Net Asset Value(s)

RNS Number : 3467V

India Capital Growth Fund Limited

06 August 2015

 



6 August 2015

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

Net Asset Value statement at 31 July 2015

Net Asset Value

The Company announces its Net Asset Value per share as at 31 July 2015 was 81.54 pence.

In July the Net Asset Value (NAV) was up 4.8% in Sterling terms, whilst the BSE Mid Cap Index was up 5.9%, delivering an underperformance against the notional benchmark of 1.1%. Against Ocean Dial's Composite Index, ICGF underperformed by 0.1%. In local currency terms, the NAV was up 4.5% for the month.

The Company also announces its fully diluted NAV per share as at 31 July 2015 was 74.69 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 Dewan Housing (up 14.3%), Max India (up 13.6%), Emami (up 13.0%) and Indusind Bank (up 12.0%). Negative attribution came from Federal Bank (down 8.3%), Lupin (down 10.0%) and Balkrishna Industries (down 4.7%).

Market and economic update

This was a positive month for Indian equity markets driven primarily by mid cap stocks; the BSE Sensex was up 1.2% whilst the BSE Mid Cap Index was up 5.6%. Foreign Institutional Investors were net buyers (US$874m for the month), whilst domestic institutions turned net sellers. The Rupee appreciated 0.3% against Sterling but depreciated by 0.4% against the US Dollar.

Consumer Price Inflation for June came in at 5.4%, rising for the second successive month led both by higher food and non-food items (mainly education, personal care and household goods). In line with expectations, the RBI kept policy rates on hold citing the delay in transmission of earlier rate cuts by banks, whilst being mindful of the timing and extent of the Federal Reserve's shift towards tighter monetary policy. It did signal however that inflation risks have reduced, assisted by a fall in the price of crude oil (down 19% for the month). With the potential of a better than expected monsoon, the door has been left open for further easing later in the year.

Parliamentary activity in the current session has been stifled due to repeated adjournments forced by opposition parties. Key reforms such as an amendment to the Land Acquisition Act are therefore still pending, but progress has been made towards passing the GST Bill. The Government announced an US$11bn capital infusion to public sector banks over FY16-19 to help them meet the adequacy requirements and strengthen balance sheets. This is a small step relative to the banks' requirements but a positive one.

Q1FY16 results announced thus far have been subdued driven by weak top line growth. On the whole, an improvement in operating margins has mitigated the potential impact on earnings, driven primarily by the fall in commodity prices. Lacklustre credit growth, cement volumes, rural consumption, and order inflows for industrial companies indicate the real economy is yet to respond to Government reforms and an improved macro environment.

Portfolio analysis by sector as at 31 July 2015
Sector	No. of Companies	% of Portfolio
Financials	8	23.7%
Industrials	8	18.2%
Consumer Discretionary	5	15.4%
Consumer Staples	4	10.7%
Materials	4	10.2%
Healthcare	4	9.2%
IT	3	5.9%
Energy	1	0.8%
Total Equity Investment	37	94.1%
Net Cash		5.9%
Total Portfolio	37	100.0%
Top 20 holdings as at 31 July 2015
Holding	Sector	% of Portfolio
Federal Bank	Financials	4.5%
Dewan Housing	Financials	4.3%
Jyothy Laboratories	Consumer Staples	4.1%
Motherson Sumi Systems	Consumer Discretionary	4.0%
Max India	Financials	3.8%
Kajaria Ceramics	Industrials	3.7%
PI Industries	Materials	3.7%
Dish TV India	Consumer Discretionary	3.7%
Emami	Consumer Staples	3.6%
Indusind Bank	Financials	3.6%
Yes Bank	Financials	3.5%
Divi's Laboratories	Healthcare	3.1%
Tech Mahindra	IT	3.0%
Gujarat Pipavav Port	Industrials	2.9%
Balkrishna	Consumer Discretionary	2.9%
Ajanta Pharma	Healthcare	2.8%
Exide	Industrials	2.8%
Berger Paints India	Materials	2.7%
Eicher Motors	Industrials	2.7%
Mahindra CIE Auto	Consumer Discretionary	2.6%
Portfolio analysis by market capitalisation size as 31 July 2015
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR60bn)	13	20.6%
Mid Cap (INR60bn <M/Cap<INR250bn)	16	49.2%
Large Cap (M/Cap > INR250bn)	8	24.3%
Total Equity Investment	37	94.1%
Net Cash		5.9%
Total Portfolio	37	100.0%

 

END

 

 

NAVUGURCRUPAGPQ