Net Asset Value(s)

India Capital Growth Fund Limited
06 November 2006


India Capital Growth Fund Limited
06 November 2006

India Capital Growth Fund

31 October, 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

06 November 2006

Net Asset Values

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

Net asset value per share - undiluted                95.25 p

Net asset value per share - fully diluted            96.04 p

Progress Update

The Market Environment

October witnessed another strong month for FII inflows at US$ 1,781Mn (compared
to US$ 1,205 Mn in September).   Quarterly results from June 2006 to September
2006, announced this month were a mixed bag. While the Information  technology
sector continued strong growth, the auto sector showed signs of input cost
pressure. On the back of robust  results from other sectors, BSE Sensex touched
a peak of 13,039, a 4.07% increase during the month. This rise was  largely
contributed by the Information Technology, Banks and Oil and Gas sectors.

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

31 Dec '05 to 31 October                              37.92%                            7.56%
29 September to 31 October                             4.07%                            3.75%

During September, the Rupee moved to 85.56 against Sterling, appreciating by
0.62%, its second consecutive month of  appreciation against Sterling this year.
Since 1 Jan 2006 however the Rupee has depreciated by 9.85% against Sterling.

Activity during the Month

The Company continued to build stakes in its core portfolio. The Company
subscribed to the preferential allotment of  Asian Electronics and the rights
issue of Gruh Finance. The Company has also subscribed to the preferential
allotment  in Varun Shipping due to take place in November. This transaction is
not reflected in this month's NAV.

We have also made a commitment to an investment in CitiXsys Technologies, an
unlisted company in the IT space, also for  completion in November. CitiXsys
Technologies is a software product company, partnering SAP AG in installing and 
testing 'Business One', SAP's ERP product for small and medium enterprises, and
installing add-in modules for customers.

The Company also sold out two small cap companies and plans to exit from one
more mid-cap company on account of recent  appreciation in stock price.

Summary of Holdings at 31 October 2006 by Size

Category                        No. of Companies             % of Portfolio
Small and Mid Cap                         26                     67.9%
Large Cap                                  8                     18.0%
Total Investments                         34                     85.9%
Cash                                                             14.1%

Small and Mid Cap Holdings at 31 October 2006 by Sector
Sector Summary                                                  % of Portfolio
Textiles                                                          8.0%
Housing & Construction                                            7.6%
Engineering / Other Manufacturing                                 6.8%
Steel / Iron Ore                                                  6.5%
Auto Components                                                   5.5%
IT                                                                4.2%
Electrical / Lighting Systems                                     4.1%
Media                                                             4.0%
Shipping                                                          3.1%
Housing Finance                                                   3.1%
Airlines                                                          3.0%
Financial Services                                                2.9%
Sugar                                                             2.4%
Pharmaceuticals                                                   2.3%
Agro Chemicals                                                    2.2%
Hotels                                                            2.0%
FMCG                                                              0.2%

Top 5 Small and Mid Cap Holdings at 31 October 2006

Holding                              Sector                  % of Portfolio
S Kumars Nationwide                  Textiles                     5.6%
Logix Microsystems                   IT                           4.2%
JSW Steel                            Steel                        4.2%
Asian Electronics                    Electricals                  4.1%
Prime Focus                          Media                        4.0%


6 November 2006




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