Net Asset Value(s)

India Capital Growth Fund Limited
10 January 2007


India Capital Growth Fund Limited
10 January 2007

India Capital Growth Fund

31 December 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

10 January 2007

Net Asset Values

The Company announces its net asset values per share as at 31 December 2006:

Net asset value per share - undiluted              93.24 p

Net asset value per share - fully diluted          94.37 p

Progress Update

The Market Environment

FIIs sold heavily in the month of December by US$ 582 Mn, prompted by the increase in Cash Reserve Ratio (CRR) by 
Reserve Bank of India, which caused major banks to increase Prime Lending Rates (PLR). The RBI in its announcement made 
it very clear that it would like to moderate the high credit growth rate and thus inflation through these measures.

Market Changes                                BSE Sensex         BSE Small Cap Index
                                             (% Change)          (% Change)

31 Dec '05 to 31 December                         47%               16%
30 November to 31 December                         1%                4%

During December, the Rupee moved to 86.91 against Sterling, appreciating by 0.34%. Since 1 Jan 2006 the Rupee has 
depreciated by 11.58% against Sterling.

Activity during the Month

The Company continued to add to its core portfolio and trimmed the positions in non-core stocks during the month. We 
have increased our stakes in Mahindra Ugine, S Kumars, Gruh Finance, Grabal Alok, Dabur Pharma and SpiceJet. We added 
one listed company - IOL Broadband Limited - and one unlisted company - Marwadi Shares and Finance Limited - to our 
core portfolio.

IOL Broadband is a listed Internet Protocol Television (IPTV) company, providing last-mile triple play access (which 
includes voice, data and wireless) to homes and enterprises across India.

Marwadi Share and Finance Limited is a retail brokerage house with a prominent presence in Gujarat and well positioned 
to increase its presence all over India. It provides a wide range of services to its retail clients. Its brokerage 
services cover the cash and derivative segments on the leading Indian stock exchanges and commodities markets in India.

As we have deployed funds into small cap companies, we have trimmed our large cap portfolio, in particular taking 
advantage of high prices in the banking sector prior to the RBI's increase in the CRR.

Summary of Holdings at 31 December 2006 by Size

Category                   No. of Companies             % of Portfolio
Small and Mid Cap               34                     81.7%
Large Cap                        4                      5.9%
Total Investments               38                     87.6%
Cash                                                   12.4%

Small and Mid Cap Holdings at 31 December 2006 by Sector
Sector Summary                                                   % of Portfolio
Housing & Construction                                                    11.8%
Textiles                                                                   9.8%
Auto Components                                                            8.1%
Financial Services                                                         7.1%
Media                                                                      6.2%
Steel/Pig Iron                                                             5.2%
Engineering / Other Manufacturing                                          5.0%
IT                                                                         4.9%
Aviation                                                                   4.5%
Electricals                                                                4.4%
Shipping                                                                   4.1%
Housing Finance                                                            3.7%
Pharmaceuticals                                                            2.6%
Agro Chemicals                                                             2.0%
Hotels                                                                     1.6%
Other                                                                      0.7%


Top 5 Small and Mid Cap Holdings at 31 December 2006

Holding                            Sector                                   % of Portfolio
S Kumars Nationwide                Textiles                                     6.8%
SpiceJet                           Aviation                                     4.5%
Mahindra Ugine                     Auto Components                              4.5%
Prime Focus                        Media                                        4.4%
Asian Electronics                  Electricals                                  4.4%


10 January 2007




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