Net Asset Value(s)

RNS Number : 6595B

India Capital Growth Fund Limited

08 January 2015

 



8 January 2015

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

Net Asset Value statement at 31 December 2014

Net Asset Value

The Company announces its Net Asset Value per share as at 31 December was 74.36 pence.

In December the Net Asset Value (NAV) was up 1.5% in Sterling terms, whilst the BSE Mid Cap Index was down 0.2%, delivering an outperformance against the notional benchmark of 1.7%. Against Ocean Dial's Composite Index, ICGF outperformed by 3.3%. In local currency terms, the NAV increased 2.8% for the month.

The Company also announces its fully diluted NAV per share as at 31 December 2014 was 69.91 pence. 

The above fully diluted NAV assumes that the 37,500,710 Subscription Shares rights will be exercised at their subscription price of 61 pence. 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.

Portfolio update

Positive attribution to the portfolio's performance came from Gujarat Pipavav Port (up 26.3%), KPIT Technologies (up 20.4%), PI Industries (up 16.0%), and Jyothy Laboratories (up 11.0%). Negative attribution came from Jain Irrigation (down 17.0%), Voltas (down 10.4%) and Larsen & Toubro (down 8.8%).

Market and economic update

Indian equity markets saw mixed performance in December; the BSE Sensex fell 4.2% whilst the BSE Mid Cap Index rose 1.0%. Foreign Institutions took some profits into the year end (US$161m for the month) after 10 straight months of inflows. Strong positive flows from domestic institutions however (US$2.8bn) helped limit the downfall. The currency depreciated by 2.2% against US$ and 1.2% against GBP.

CPI Inflation fell to 4.4% for November principally due to benign commodity prices and a favourable base effect. The base effect benefit will fall away in the first quarter partially reversing the downward pressure, but keeping CPI within the 6% range. Core inflation continues to reduce however, implying subdued demand and weak pricing power. Industrial production (IIP) contracted 4.2% in October, much below consensus and partially due to a one off event, but nonetheless raising the noise around the likelihood of a rate cut shortly. India's manufacturing PMI (based on business expectations) rose to 54.5 in December, a two-year high led by a healthy increase in new orders from both at home and from abroad implying industrial production data will improve in the months ahead.

The BJP's minority in the upper house delayed the legislative process. The Government, determined to proceed with its agenda however, issued a number of parliamentary ordinances, thereby passing the parliamentary process. Thus foreign direct investment in the insurance sector was raised to 49% from 26%, whilst a law was passed permitting the Government to auction coal mines and open the sector for private sector commercial mining. Additionally, changes were made to facilitate the purchase of land, critical to an improvement in the infrastructure process. These bills must now be approved in the upper house within six weeks from the start of the next session to ensure the ordinance does not lapse. Elsewhere the BJP won the State election in Jharkhand and performed credibly in Jammu and Kashmir, confirming its popularity remains intact.

Portfolio analysis by sector as at 31 December 2014
Sector	No. of Companies	% of Portfolio
Industrials	10	27.4%
Financials	7	22.5%
Consumer Staples	4	10.0%
Healthcare	4	9.4%
Materials	3	9.0%
IT	3	8.5%
Consumer Discretionary	2	7.3%
Energy	1	1.6%
Total Equity Investment	34	95.7%
Net Cash		4.3%
Total Portfolio	34	100.0%
Top 20 holdings as at 31 December 2014
Holding	Sector	% of Portfolio
Federal Bank	Financials	5.5%
Motherson Sumi Systems	Consumer Discretionary	4.7%
Dewan Housing	Financials	4.1%
Jyothy Laboratories	Consumer Staples	4.1%
Tech Mahindra	IT	4.1%
Yes Bank	Financials	3.8%
PI Industries	Materials	3.6%
Emami	Consumer Staples	3.4%
Eicher Motors	Industrials	3.4%
Exide	Industrials	3.3%
Gujarat Pipavav Port	Industrials	3.3%
Kajaria Ceramics	Industrials	3.3%
Indusind Bank	Financials	3.2%
Max India	Industrials	3.2%
Divi's Laboratories	Healthcare	3.1%
Berger Paints India	Materials	2.9%
Balkrishna Industries	Industrials	2.9%
Lupin	Healthcare	2.9%
Indian Bank	Financials	2.7%
Finolex Cables	Industrials	2.7%
Portfolio analysis by market capitalisation size as 31 December 2014
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR60bn)	13	30.6%
Mid Cap (INR60bn <M/Cap<INR250bn)	13	39.5%
Large Cap (M/Cap > INR250bn)	8	25.6%
Total Equity Investment	34	95.7%
Net Cash		4.3%
Total Portfolio	34	100.0%

 

END

 

 

NAVUGUPPGUPAGGR