Net Asset Value(s)

RNS Number : 1735F

India Capital Growth Fund Limited

06 October 2008

 



India Capital Growth Fund Limited

6 October 2008

 

India Capital Growth Fund Limited (the 'Company' or 'ICGF')

30 September 2008 NAV Statement

Net Asset Values

The Company announces its net asset values per share as at 30 September 2008:

Net asset value per share - undiluted     55.68 p

Net asset value per share - fully diluted   55.68 p

Update

In September markets across the world fell severely in response to the deepening financial crisis in the USA and Europe.  However, the Indian financial system has not been impacted significantly as the vast majority of Indian banks are not players in the global markets, and domestically non-performing loans appear to be at a level that is not material or of concern to banks or regulators. There appear to be no particular liquidity issues at present in the Indian banking system, and rumours that one of the largest banks, ICICI Bank might have problems through its international exposure, were quickly and effectively dismissed by the Reserve Bank of India.

Indian stock markets, however, followed the global downward track, largely as a result of continued selling by Foreign Institutional Investors ('FIIs') who withdrew a further USD 2 billion from the market in September, with domestic institutional buying not being able to match such outflow. FIIs have withdrawn a net USD 9.1 billion in the last nine months (this takes into account the 1.2 billion FII inflow into the Reliance Power IPO in early January 2008).  The BSE Sensex was down 11.7%, the BSE Mid Cap Index was down 16.4%, and the BSE Small Cap Index closed down 19.1% over the month.  The Rupee also declined by 5.9% against sterling in the month. As a result, the Company's NAV fell by 23.0% in the month.

Nevertheless, the underlying story remains positive. The approval of the Indo-US nuclear deal by the US Congress, the fall in oil prices and a good monsoon with record rice and wheat production are all positive indicators for the domestic economy, and the underlying businesses within the portfolio companies in general continue to trade well. Constant and close contact is maintained with all investee companies.

In these turbulent markets a cautious strategy has been adopted with no 'fire sales' and selective buying where value is apparent.  In September, the Company built up a position in one new portfolio company and elsewhere has steadily increased stakes in other existing portfolio companies where valuations are at extremely attractive levels. 

Cash as at 30 September was GBP 3.9m, 9.4% of the portfolio.

  Analysis of holdings at 30 September 2008 

Sector Summary	No. of Companies	% of Portfolio
Media	2	12.6%
Financial Services	3	12.6%
Textiles	2	12.4%
Housing & Construction	5	11.2%
Transportation	2	9.1%
IT	3	7.7%
Pharmaceuticals, Services and Packaging	1	5.7%
Engineering / Manufacturing	3	4.8%
Offshore Oil and Gas Services	1	4.6%
Process Controls	1	4.2%
Hotels	1	3.1%
Others	2	2.6%
Total investments	26	90.6%
Cash		9.4%
Total Portfolio		100.0%

Top 10 holdings at 30 September 2008

Holding	Sector	% of Portfolio
Prime Focus	Media	8.7%
S Kumars Nationwide	Textiles	8.3%
Marwadi Shares and Finance	Financial Services	7.7%
Varun Shipping	Shipping	6.4%
Bilcare	Pharma Packaging	5.7%
Akruti City	Housing and Construction	5.6%
Great Offshore	Offshore Oil and Gas Services	4.6%
IT People	IT	4.3%
ICSA	Process Controls	4.2%
Grabal Alok	Textiles	4.1%

Portfolio breakdown by size at 30 September 2008

Size	No. of Companies	% of Portfolio
Small Cap	20	71.2%
Mid Cap	2	5.4%
Large Cap	1	5.6%
Unlisted	3	8.4%
Cash		9.4%
Total		100.0%

 

END

 

 

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