Net Asset Value(s)

India Capital Growth Fund Limited
05 October 2006


India Capital Growth Fund Limited
05 October 2006

India Capital Growth Fund

30 September, 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

5 October 2006

Net Asset Values

The Company announces its net asset values per share as at 30 September 2006:

Net asset value per share - undiluted               93.81p

Net asset value per share - fully diluted           94.84p

Progress Update

The Market Environment

In September FII inflows remained strong at US$ 1,205 Mn (compared to US$ 1,032
Mn in August). India also recorded its  best ever first quarter (Dec to Mar)
real GDP growth of 8.9% compared to 8.5% last year. On the back of this the BSE 
Sensex rose 6.46% and the BSE Small Cap rose 6.62% during September. The BSE
Sensex has recovered to levels close to  its peak in May 2006.

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

31 Dec '05 to 30 September              32.52%                           3.68%
31 August to 30 September                6.46%                           6.62%

During September, the Rupee moved to 86.09 against Sterling, appreciating by
2.96%, its first month of appreciation  against Sterling this year. Since 1 Jan
2006 however the Rupee has depreciated by 10.53% against Sterling.

Activity during the Month

The Company has continued to build stakes in its core portfolio, negotiating a
number of block deals and committing to  putting new money into two companies
where the Company already has investments. The Company is also close to a
similar  transaction in third where it already has a stake. These three
commitments, totalling just under GBP 2 million, are not  included in this
month's NAV.

The Company has made a new small cap investment in Prime Securities Limited a
Mumbai based corporate advisory and  equity broking company. Prime Securities
focuses on advising small Indian companies and assists them in their  financing,
restructuring and M&A needs.

This month finally saw a sharp rise in share prices in the banking sector and
the Company expects this trend to  continue in the near term with lower interest
rates, lower crude oil prices and inflation under control. Investments in  these
large cap stocks will however be sold out at an opportune time as we build out
our core small cap portfolio.

Summary of Holdings at 30 September 2006 by Size

Category                             No. of Companies            % of Portfolio
Small and Mid Cap                                  28                     63.9%
Large Cap                                           5                     16.5%
Total Investments                                  33                     80.4%
Cash                                                                      19.6%

Small and Mid Cap Holdings at 30 September 2006 by Sector  

Sector Summary                                                   % of Portfolio
Engineering / Other Manufacturing                                          9.9%
Textiles                                                                   7.3%
Steel / Iron Ore                                                           6.6%
Housing & Construction                                                     6.5%
Auto Comp                                                                  4.9%
IT                                                                         4.1%
Electrical / Lighting Systems                                              3.3%
Shipping                                                                   3.2%
Airlines                                                                   2.7%
Sugar                                                                      2.6%
Agro Chemicals                                                             2.4%
Financial Services                                                         2.3%
Housing Finance                                                            2.1%
Media                                                                      2.0%
Pharmaceuticals                                                            1.6%
Hotels                                                                     1.4%
Others                                                                     1.0%

Top 5 Small and Mid Cap Holdings at 30 September 2006

Holding                                  Sector                  % of Portfolio
S Kumars Nationwide                      Textiles                          5.6%
Logix Microsystems                       IT                                4.1%
JSW Steel                                Steel                             3.9%
Asian Electronics                        Electricals                       3.3%
Varun Shipping                           Shipping                          3.2%


5 October 2006




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