Half Yearly Report

RNS Number : 4452Z

India Capital Growth Fund Limited

18 September 2015

 



18 September 2015

INDIA CAPITAL GROWTH FUND LIMITED

INTERIM RESULTS FOR THE PERIOD FROM 1 JANUARY 2015 TO 30 JUNE 2015

CHAIRMAN'S STATEMENT

In my previous statement to shareholders for the 2014 Annual Report I wrote in summation that "amidst all the euphoria, 2015 will doubtless provide many challenges for investors on a domestic Indian and an International level." Indeed, India's performance in the first half of 2015 has been somewhat more measured in comparison to the substantial rerating that took place during the election year of 2014. The net asset value ("NAV") of the Fund rose by 4.8% on an undiluted basis, however the share price increased by 5.4%. In comparison the BSE Mid Cap Index, the notional index, grew by 1.4% and the BSE Sensex declined by 0.5% (all returns are in Sterling). Amidst a global backdrop of impending US monetary tightening, Eurozone debt crises and a slowdown in China, India's relative attractiveness to foreign investors has significantly increased.

The first point of discussion is the collapse in the price of crude oil that started in December 2014. It has expedited a change in attitude amongst international investors towards emerging markets, away from viewing them as a single investible asset class. Instead, each country within the category is starting to be judged on its own merits and if one agrees with the consensus that the oil price is due to stay lower for longer, India as a large commodity importer is a standout beneficiary. Moreover, sound monetary policy from the Reserve Bank of India under the leadership of Dr. Raghuram Rajan has facilitated both a low inflation environment and a substantially greater foreign exchange cushion (US$355bn¹) enabling the country to have a better chance of weathering any macro shocks that maybe lurking around the corner.

From a political point of view, the honeymoon period for the BJP Government is now over. Opposition parties have used their superior numbers in the Rajya Sabha (the upper house of Parliament) to stifle certain big ticket reforms and this can be seen from the current difficulty of passing the Goods and Services Tax ("GST") Bill as well as a pro-market amendment to the Land Acquisition Act. Nevertheless, these are challenges that any large and diverse democracy is bound to face. What is clear is that under the leadership of Narendra Modi, India is undergoing fundamental reform that is meaningfully changing the landscape for the better. The Government has used lower oil prices to remove fuel subsidies; Indian consumers now pay the market price. Furthermore, financial inclusion has been given an extraordinary push to the extent that 175 million bank accounts have been opened² since September 2014. Whilst this is an impressive achievement in itself, this will allow a more efficient subsidy system that pays directly into recipients' bank accounts, cutting out a significant amount of wastage. Moreover, the drive will help channel India's high savings rate away from unproductive assets such as gold and into the financial system providing more capital to the economy over the longer term.

In an effort to replicate his successes in Gujarat, Modi has effected a change in working culture across the country's administration. The bureaucracy which had come to a standstill under the previous Government has been empowered to be proactive and take decisions to allow businesses to operate. Interactions between bureaucrats and corporate India for licences, permits and approvals have been shifted onto a simplified online platform bringing not only efficiency, but more importantly transparency to the system. The successful re-auction of coal mines (previously cancelled by a Supreme Court judgment) in February served as evidence of change. It was the first time in India that natural resources were allocated online in a fair and open format.

For all the criticism of the Prime Minister operating as an autocrat, the long awaited Union Budget in March demonstrated full commitment towards the devolution of powers and responsibility to the states of India away from the Centre. His experience as a state Chief Minister has made regional development a key focus. Madhya Pradesh recently became the third state in a year, following Gujarat and Rajasthan, to pass amendments to the Centre's labour laws, thereby allowing businesses to take on employees with greater ease. Haryana's state Government has announced that it will look to replicate this move.

Individual states are being encouraged to take the initiative in stimulating growth through reforms and competing for inward investment.

The seismic nature of the election result in 2014 was a reflection of a different mindset from the electorate; away from subsidies and hand-outs towards social mobility through employment and wealth creation. The current Government is making several changes to facilitate this. Nevertheless, it is clear that it will take time for the real economy to respond to the various initiatives that have been undertaken. A full recovery towards a growth rate that is high enough to provide sufficient employment opportunities across the country is yet to happen and whilst business confidence is high, corporate profitability needs to improve to give the stock market its next push. Nevertheless, India's macroeconomic fundamentals are in a considerably healthier shape than they have been since the global financial crisis. Inflation is now under control, the current account deficit is manageable and the Government is bringing the fiscal deficit down to a more sustainable level. As such there is a stable foundation upon which political reform can be delivered to stimulate sustainable growth and I retain my view that now is a good time to have exposure to the market.

Regardless of the disconnect between corporate earnings and the level of the stock market, I continue to expect the Investment Manager to stick to a long term philosophy that has generated impressive performance thus far, namely by gaining exposure to high quality companies with a sufficient track record of cash flow generation purchased with a margin of safety. Indeed, at the time of writing, the share price has responded to the absolute NAV appreciation over the past 12 months thereby approaching the strike price of the Subscription Shares that were issued in August 2014. The Board is open to considering an earlier exercise of the subscription issue prior to its expiry in August 2016. However this is subject both to certain conditions being met prematurely, (the details of which can be found in the admission document on the Company's website) and if it believes that the prevailing environment presents an opportune time to,  to increase the size of the Company's assets allowing shareholders to add to their exposure to Indian equities. As ever, the Board will keep shareholders fully informed of all eventualities as and when they occur.

Whilst the Indian market is currently going through a period of consolidation and investors are attempting to grapple with a volatile global environment, the stars are aligning for India. There are several challenges that will no doubt arise, however the long term story is very much intact.

Fred Carr

Chairman

18 September 2015

_______________________

¹ Source: Bloomberg

² Source: Ministry of Finance, Government of India

INVESTMENT MANAGER'S REPORT

Introduction

After a very strong performance in 2014, the first half of 2015 has seen the Indian market show a modest performance with the BSE Sensex up 1% and the BSE Mid Cap increasing 3%, both in local and foreign currency terms. The Fund has returned 6.4% during this period, outperforming the notional benchmark by a handsome margin. While the performance of the Indian market may look modest, it has come on the back of a volatile global environment amid concerns of a Greek exit from the Euro Zone, a potential rise in interest rates in the US and slowing growth in China. All the above led to volatility across global markets, with India being no exception. Yet, India remained one of the few bright spots among emerging markets; not only was the market in positive territory, but the currency also held up well. Moreover, India saw net Foreign institutional investment (FII) inflows of over US$6bn during the period.

One of the reasons for the superior performance was that India continued to benefit from the uncertain global environment. The fall in commodity prices, particularly oil, ensured inflation continued to trend downwards while the Government subsidy burden also fell, leading to better fiscal compliance in a low growth environment. More importantly, the intense pressure on the currency abated as the current account deficit fell sharply to just 1.4% of GDP from a peak of 5.1%. As a result, the Reserve Bank of India has lowered interest rates by 75bps year-to-date. Petrol, Diesel and LPG prices have also been lowered and now retail at market prices (in LPG, the subsidy amount is directly transferred to individual's bank account). Furthermore, with volatile gold prices, not only have gold imports come off, but we are seeing a gradual shift of saving moving from physical assets to financial assets - domestic mutual fund equity assets have seen net inflows of over US$5bn after three years of outflows, while deposit growth for banks is outpacing credit growth.

What has been disappointing though is the sustained weakness in economic growth. The March 2015 quarter saw aggregate earnings growth for BSE Sensex companies turn negative and the June 2015 quarter results also appear to be on similar lines. This is despite the NDA Government taking several policy initiatives to address bottlenecks on environment approvals, allocation of resources, as well as bringing about transparency in decision making. Besides the above, the Government has taken several initiatives like Make in India, Digital India and Clean India to give a clear direction on the areas of focus along with policy measures to attract investment. This has created a very positive environment, even though it is yet to translate to actual investment on the ground, particularly from corporate India. This is because the cash rich companies are still operating at 70% capacity utilization and unwilling to invest until they see demand improve. On the other hand, cash strapped companies, particularly in the infrastructure space are unable to raise capital given their weak balance sheets and risk aversion by the banking sector. This has propelled the Government to take the lead in pushing investments in the infrastructure space.

We are now starting to see the first signs of economic activity picking up. Sectors like Railways and Roads have started placing orders. Data released by the Centre for Monitoring Indian Economy (CMIE) shows a decline in the number of projects which are stalled. Sales of Medium and Heavy commercial vehicles have bounced back, car sales have hit double digit growth rates and even other lead indicators like air travel reflect an improving trend. All these have given a lot of hope that the economy may have finally bottomed out.

A dampener to the above revival could be a below average monsoon. Should the forecast of the Indian Meteorological Department come true, it may impact the rural economy and force the Government to divert resources. Politics also remains a concern. Lack of majority in the upper house may further push back the passage of some key bills like the land amendment bill and the GST bill, both of which are key in accelerating the economy. Despite these short term concerns, we remain positive on the direction of the economy and believe growth in the future will be sustainable over several years.

Portfolio Construction and Attribution

We had made several changes to our portfolio in 2014 post the election of the NDA Government, realigning the portfolio towards their economic policies. We thus made few portfolio changes in the first half of the year, with only three new stock additions and one exit. We did however trim exposure in several stocks to take advantage of price movements.

Among the stocks added were two forging companies, Ramkrishna Forgings (makes forged components for commercial vehicles for domestic as well as exports to Tier 1 manufacturers) and Mahindra CIE (a joint venture with CIE, Spain with plants in Europe, India and China). Besides this we also added another Cement company, JK Laxmi (presence in North and East India). This was to add to our existing cement exposure, which until now was through The Ramco Cements (with a presence in South India). The only stock we exited was Larsen & Toubro.

Many stocks in the portfolio contributed to our performance, including Ajanta Pharma (3.0% weight) up 69%, Dish TV (3.9% weight) up 58%, Emami (3.6% weight) up 47%, PI Industries (3.7% weight) up 25% and Kajaria Ceramics (3.8% weight) up 23%. Among the negative contributors were KPIT Cummins (1% weight) down 54%, Indian Bank (1.7% weight) down 33% and Tech Mahindra (2.8% weight) down 26%.

Our outperformance stemmed from the fact we had few stocks which registered sharp declines and had limited exposure to sectors like Metals and Infrastructure, which saw declines over the period.

Ocean Dial Asset Management

18 September 2015

INVESTMENT POLICY

The Company's investment objective is to provide long-term capital appreciation by investing (directly and indirectly) in companies based in India. The investment policy permits the Company to make investments in a range of Indian equity and equity linked securities and predominantly in listed mid and small cap Indian companies with a smaller proportion in unlisted Indian companies. Investment may also be made in large-cap listed Indian companies and in companies incorporated outside India which have significant operations or markets in India. While the principal focus is on investment in listed or unlisted equity securities or equity linked securities, the Company has the flexibility to invest in bonds (including non-investment grade bonds), convertibles and other types of securities. The Company may, for the purposes of hedging and investing, use derivative instruments such as financial futures, options and warrants. The Company may, from time to time, use borrowings to provide short-term liquidity and, if the Directors deem it prudent, for longer term purposes. The Directors intend to restrict borrowings on a longer term basis to a maximum amount equal to 25 per cent of the net assets of the Company at the time of the drawdown. It is the Company's declared policy not to hedge the exposure to the Indian Rupee.

PRINCIPAL INVESTMENTS

AS AT 30 JUNE 2015

Holding	Type		Sector		Value £000'S	% of Company NAV
Federal Bank	Mid cap		Financials		2,968	5.09%
Jyothy Laboratories	Small cap		Consumer Staples		2,431	4.17%
Motherson Sumi Systems	Large cap		Consumer Discretionary		2,399	4.11%
Dewan Housing	Mid cap		Financials		2,270	3.89%
Dish TV India	Mid cap		Consumer Discretionary		2,253	3.86%
Kajaria Ceramics	Mid cap		Industrials		2,206	3.78%
PI Industries	Mid cap		Materials		2,188	3.75%
Yes Bank	Large cap		Financials		2,149	3.68%
Emami	Large cap		Consumer Staples		2,120	3.63%
Max India	Mid cap		Financials		2,044	3.50%
Total top 10 equity investments					23,028	39.46%
Other Small Cap	(11 companies)				8,722	14.95%
Other Mid Cap	(10 companies)				15,006	25.72%
Other Large Cap	(5 companies)				8,407	14.41%
Total equity investments					55,163	94.53%
Cash less other net current liabilities of ICG Q Limited					3,146	5.39%
Total net assets of ICG Q Limited					58,309	99.92%
Cash less other net current liabilities of the Company					45	0.08%
Total Net Assets					58,354	100.00%

Notes:
Large Cap - companies with a market capitalisation above INR250 billion (£2.5bn)			29.23%
Mid Cap - companies with a market capitalisation between INR60 billion and INR250 billion (£600m - £2.5bn)			50.35%
Small Cap - companies with a market capitalisation below INR60 billion (£600m)			14.95%
			94.53%

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS TO 30 JUNE 2015

			Unaudited	Unaudited	Audited
			Six months	Six months	Year to
			to 30.06.15	to 30.06.14	31.12.14
	Revenue £000	Capital £000	Total £000	Total £000	Total £000
Income
Net gains on financial asset at fair value through profit or loss	-	2,733	2,733	10,508	21,278
Total income	-	2,733	2,733	10,508	21,278
Expenses
Management fee	72	-	72	(13)	(26)
Other professional fees	(1)	-	(1)	(107)	(117)
Other expenses	(143)	-	(143)	(161)	(294)
Foreign exchange loss	-	-	-	-	(1)
Total expenses	(72)	-	(72)	(281)	(438)
(Loss)/profit for the period/year before taxation	(72)	2,733	2,661	10,227	20,840
Taxation	-	-	-	-	-
(Loss)/profit for the period/year after taxation	(72)	2,733	2,661	10,227	20,840
(Loss)/earnings per Ordinary Share (pence)	(0.10)	3.64	3.55	13.64	27.79
Fully diluted (loss)/earnings per Ordinary Share (pence)	(0.10)	3.62	3.53	13.64	27.79

The total columns of this statement represents the Company's condensed statement of comprehensive income, prepared in accordance with IFRS. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies.

The profit after tax is the "total comprehensive income" as defined by IAS 1. There is no other comprehensive income as defined by IFRS and all the items in the above statement derive from continuing operations.

The fully diluted earnings per Ordinary Share in respect of the year ended 31 December 2014 was incorrectly calculated and has been restated to show the correct figure.

UNAUDITED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2015

		Share Capital £000	Capital Reserve £000	Revenue Reserve  £000	Other Distributable Reserve  £000	Total   £000
Balance as at 1 January 2015		750	(9,313)	(8,594)	72,850	55,693
Gain on investments		-	2,733	-	-	2,733
Revenue loss for the period after taxation		-	-	(72)	-	(72)
Balance as at 30 June 2015		750	(6,580)	(8,666)	72,850	58,354

  For the six months to 30 June 2014 (unaudited)

		Share Capital £000	Capital Reserve £000	Revenue Reserve  £000	Other Distributable Reserve  £000	Total   £000
Balance as at 1 January 2014 (restated)		750	(30,591)	(8,156)	72,850	34,853
Gain on investments		-	10,508	-	-	10,508
Revenue loss for the period after taxation		-	-	(281)	-	(281)
Balance as at 30 June 2014		750	(20,083)	(8,437)	72,850	45,080

  For the year ended 31 December 2014 (audited)

		Share Capital £000	Capital Reserve £000	Revenue Reserve  £000	Other Distributable Reserve  £000	Total   £000
Balance as at 1 January 2014 (restated)		750	(30,591)	(8,156)	72,850	34,853
Gain on investments		-	21,278	-	-	21,278
Revenue loss for the period after taxation		-	-	(438)	-	(438)
Balance as at 31 December 2014		750	(9,313)	(8,594)	72,850	55,693

UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

		Unaudited				Unaudited		Audited
		30.06.15				30.06.14		31.12.14
		£000				£000		£000
Non-current assets
Financial asset designated at fair value through profit or loss		58,309				45,257		55,776
Current assets
Cash and cash equivalents		83				58		48
Receivables		92				14		8
		175				72		56
Current liabilities
Payables		(130)				(249)		(139)
Net current assets/(liabilities)		45				(177)		(83)
Total assets less current liabilities		58,354				45,080		55,693
Equity
Ordinary share capital		750				750		750
Reserves		57,604				44,330		54,943
Total equity		58,354				45,080		55,693
Number of Ordinary Shares in issue		75,001,463				75,001,463		75,001,463
Net Asset Value per Ordinary Share (pence) - Undiluted			77.80			60.11		74.26
Net Asset Value per Ordinary Share (pence) - Diluted			72.20			60.11		69.83

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2015

		Unaudited		Unaudited		Audited
		30.06.15		30.06.14		31.12.14
		£000		£000		£000
Cash flows from operating activities
Operating profit		2,661		10,227		20,840
Adjustment for:
Net gain on financial asset at fair value through profit or loss		(2,733)		(10,508)		(21,278)
Foreign exchange losses		-		-		1
Operating loss before working capital changes		(72)		(281)		(437)
Working capital changes
(Increase)/decrease in receivables		(84)		1		7
(Decrease)/increase in payables		(9)		53		(57)
Net cash outflow from operating activities		(165)		(227)		(487)
Cash flows from investing activities
Sale of investments		200		224		475
Net cash inflow generated from investing activities		200		224		475
Net increase/(decrease) in cash and cash equivalents during the period/year		35		(3)		(12)
Cash and cash equivalents at the start of the period/year		48		61		61
Foreign exchange losses		-		-		(1)
Cash and cash equivalents at the end of the period/year		83		58		48

NOTES

FOR THE SIX MONTHS TO 30 JUNE 2015

1. Accounting Policies

Basis of accounting

The unaudited interim financial statements for the six months ended 30 June 2015 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and interpretations adopted by the International Accounting Standards Board (IASB).

The unaudited interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's financial statements as at 31 December 2014.

Basis of preparation

The interim financial statements for the period ended 30 June 2015 have been prepared under the historical cost convention adjusted to take account of the revaluation of the Company's investments to fair value.

Where presentational guidance set out in the Statement of Recommended Practice (SORP) for Investment Trust Companies and Venture Capital Trusts issued by the Association of Investment Companies (AIC) in January 2009 is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. In particular, supplementary information which analyses the statement of comprehensive income between items of a revenue and capital nature has been presented alongside the statement of comprehensive income.

Impact of IFRS 10 'Consolidated Financial Statements'

As set out under IFRS 10, a parent entity that qualifies as an investment entity is not able to consolidate its subsidiaries. The Company meets all the following criteria to qualify as an investment entity:-

(i)         Obtaining funds from one or more investors for the purpose of providing those investors with investment management services - the Board of Directors of the Company has delegated this function to its investment manager, Ocean Dial Asset Management Limited;

(ii)         Commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income or both - funds are invested in ICG Q Limited for the sole purpose of achieving capital appreciation via further placements in Indian listed securities; and

(iii)        Measures and evaluates the performance of substantially all of its investments on a fair value basis - on a monthly basis, the Company's Board of Directors evaluates the performance of its investment in ICG Q Limited based on the prevailing Net Asset Value at the corresponding valuation date.

On the basis of the above, these unaudited financial statements represent the stand-alone figures of the Company. All comparative figures for the period ended 30 June 2014 (unaudited) and year ended 31 December 2014 (audited) represent Company figures instead of consolidated figures. However, the net asset value and aggregate reserves of the Company remain unchanged. There was a reclassification between capital and revenue reserves and income and expenses in the statement of comprehensive income.

Expenses

Expenses are accounted for on an accruals basis. Other expenses, including management fees, are allocated to the revenue column of the statement of comprehensive income.

Taxation

Full provision is made in the statement of comprehensive income at the relevant rate for any taxation payable in respect of the results for the period.

Investment

The Company's investment is designated at fair value through profit or loss at the time of acquisition. It is initially recognised at fair value, being the cost incurred at acquisition. Transaction costs are expensed in the statement of comprehensive income. Gains and losses arising from changes in fair value are presented in the statement of comprehensive income in the period in which they arise.

The investment is designated at fair value through profit or loss at inception because it is managed and its performance evaluated on a fair value basis in accordance with the Company's investment strategy as documented in the Admission Document and information thereon is evaluated by the management of the Company on a fair value basis.

Purchases and sales are recognised on the trade date - the date on which the Company commits to purchase or sell the investment.  

Financial assets

The financial asset is derecognised when the rights to receive cash flows from the investment have expired or the Company has transferred substantially all risks and rewards of ownership.

Receivables are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment. Due to their short-term maturities, their fair values approximate their costs.

Payables are recognised initially at fair value and subsequently measured at amortised cost. Due to their short-term maturities, their fair values approximate their costs.

Foreign currency translation

The Company's shares are denominated in Sterling and the majority of its expenses are incurred in Sterling. Accordingly, the Board has determined that the functional currency is Sterling. Sterling is also the presentation currency of the financial statements.

Monetary foreign currency assets and liabilities, including investments at fair value through profit or loss, are translated into Sterling at the rate of exchange ruling at the statement of financial position date. Investment transactions and income and expenditure items are translated at the rate of exchange ruling at the date of the transactions. Gains and losses on foreign exchange are included in the statement of comprehensive income.

Cash and cash equivalents

Cash comprises cash in hand, overdrafts and demand deposits. Cash equivalents are short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant changes in value. 

Standards, interpretations and amendments to published statements not yet effective

Certain current standards, amendments and interpretations are not relevant to the Company's operations. Equally, certain interpretations to existing standards which are not yet effective are equally not relevant to the Company's operations. At the date of the authorisation of these financial statements, the following standards and interpretations which were in issue but not yet effective have not been early adopted in these financial statements.

IFRS 9 - Financial instruments is effective for periods beginning on or after 1 January 2018

IFRS 15 - Revenue from contracts with customers beginning on or after 1 January 2018

Standards, interpretations and amendments to published statements not yet effective (continued)

The Board has not yet assessed the impact of these standards as they have been recently published. The Directors believe that other pronouncements which are in issue but not yet operative or adopted by the Company will not have a material impact on the financial statements of the Company, but these will continue to be reviewed.

2. Significant accounting judgements, estimates and assumptions

IFRS require management to make judgments, estimates and assumptions that effect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equate to the related actual results. The main use of accounting estimates and assumptions occurs in the calculation of the sensitivity analysis.  And in relation to the valuation of unlisted investment, actual results may differ from the estimates. It is management's judgement that NAV of ICG Q Limited is an appropriate proxy for fair value as the Company can control the sale of the subsidiary's investments and therefore no liquidity discount required.

3. Earnings per share

Earnings per Ordinary Share is calculated on the profit for the period of £2,661,000 (30.06.14 - £10,227,000) divided by the weighted average number of Ordinary Shares of 75,001,463 (30.06.14 - 75,001,463).

The fully diluted Earnings per Ordinary Share is calculated on the same profit for the period but divided by the diluted weighted average number of Ordinary Shares of 75,450,937 (30.06.14 - 75,001,463).

The diluted weighted average number of shares assumes that the 37,500,710 Subscription Shares issued on 6 August 2014 will be exercised at their subscription price of 61 pence if the average market price of Ordinary Shares for the period, which was 61.74 pence (30.06.14 - not applicable), exceeds this subscription price. Consequently in accordance with IAS 33, the dilutive potential ordinary shares for the period were 449,474 (30.06.14 - not applicable), which when added to the weighted average number of Ordinary Shares of 75,001,463 (30.06.14 - 75,001,463) gives a weighted average number of Ordinary Shares for the purposes of fully diluted Earnings per Ordinary Share of 75,450,937 (30.06.14 - 75,001,463).  

The Subscription Shares have a subscription date of 6 August 2016. However, if at any time after 6 August 2015 the average middle market quotation for an Ordinary Share for at least 10 consecutive trading days is 5% or more above the subscription price, the Company has the right, but not the obligation, by an announcement on a RIS, to change the subscription date for exercise of the Subscription Shares to an earlier date (being a date not less than 30 days after the Company's announcement) that it is bringing forward the subscription date. In that event, an announcement will be made on a RIS and a notice of the revised subscription date will be given to all holders of the Subscription Shares on the register at 5.00pm on the date falling three business days following the announcement of the revised subscription date.

- END -

This announcement was approved by the Board on 18 September 2015. It is not the Company's interim accounts, but has been prepared on the same basis as those accounts.

The full Interim Report together with the unaudited accounts for the period is expected to be mailed to shareholders on 25 September 2015 and a copy will be posted on the Company's website www.indiacapitalgrowth.com in accordance with AIM Rule 26.

Disclaimer: Neither the content of the Company's website, nor the content of any website accessible from hyperlinks on the Company's website (or any other website), is incorporated into, or forms part of, this announcement.

Enquiries:

Apex Fund Services (Guernsey) Limited

Administrator & Secretary

Stephen Cuddihee                 01481 706999

Ocean Dial Asset Management Limited

Investment Manager

Robin Sellers

Amul Pandya                        020 7068 9870

Grant Thornton UK LLP

NOMAD

Philip Secrett

Jen Clarke                            020 7383 5100

Numis Securities Limited

Broker

Nathan Brown

Hugh Jonathan                    020 7260 1000

 

END

 

 

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