Net Asset Value(s)

RNS Number : 6506A

India Capital Growth Fund Limited

08 June 2016

 

The following amendment has been made to the Net Asset Value announcement released on 5 May 2016 at 15:28 under RNS No 3726X.

The table 'Portfolio analysis by market capitalisation size' has been amended. All other details remain unchanged.

The full amended text is shown below.

5 May 2016

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

Net Asset Value statement at 30 April 2016

Net Asset Value

The Company announces its Net Asset Value per share as at 30 April 2016 was 79.05 pence.

The Net Asset Value (NAV) was up 2.0% in Sterling terms, whilst the BSE Mid Cap Index was up 1.5%, delivering an out performance against the notional benchmark of 0.5%. Against Ocean Dial's Composite Index, ICGF out performed by 1.2%. 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 30 April 2016 was 73.04 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 PI Industries (up 13.0%), Yes Bank (up 9.0%), Kajaria Ceramics (up 9.6%) and The Ramco Cements (up 12.6%). Negative attribution came from Motherson Sumi (down 5.3%), NIIT Technologies (down 5.4%) and Radico Khaitan (down 7.4%).

Market and economic update

India's equity market extended the rally; the BSE Sensex rose 1.0%, whilst the BSE Mid Cap Index grew 4.0% in tandem with the broader rally in Emerging Markets. Foreign Institutions were net buyers of equities (US$552m for the month), while domestic institutions were net sellers (US$382m for the month). INR fell 0.3% against the US Dollar and 2.4% against Sterling.

Consumer price inflation fell from 5.3% in February to 4.8% in March, driven predominantly by lower food prices, and is now below the RBI's target of 5% by March 2017. Meteorologists are forecasting a "normal" monsoon season (May - September) and should this prevail, following the previous two years' of drought conditions, inflation expectations will fall further. This should enable easier monetary policy lending a boost to the economy and an additional lift to domestic facing stocks.

Industrial production for February rose 2% year over year following three consecutive months of contraction. Consumer durables led the charge growing 9.7%, supported by mining, manufacturing and electricity sectors which all advanced 5.0%, 0.7% and 9.6% respectively. This, and other pockets of the economy such as cement sales, may suggest that outlook in some selective areas is brightening. In addition, fourth quarter and full year FY16 numbers have started to trickle through. Consumer Discretionary, Consumer Staples, Cement and Telecom companies have surprised positively both in volumes and margins, whereas the developed market facing IT companies, with the exception of Infosys, disappointed. Within the private sector banking space corporate lenders, including ICICI and Axis Bank, continued to disappoint on asset quality as expected. We expect further slippages in the months ahead, as articulated by ICICI Bank's management who claimed "in a very challenging operating and economic environment, there is significant uncertainty about future trends, and corporate stress will continue". In the area of retail lending however, the banks continue to report double digit credit growth and healthy asset quality. Although results to date have looked better than supposed, we caution that the really bad stuff awaits us.

 

Portfolio analysis by sector as at 30 April 2016
Sector	No. of Companies	% of Portfolio
Financials	10	27.5%
Materials	7	17.1%
Consumer Discretionary	5	13.1%
Industrials	5	12.8%
Healthcare	5	9.8%
Consumer Staples	4	9.0%
IT	3	6.5%
Total Equity Investment	39	95.8%
Net Cash		4.2%
Total Portfolio	39	100.0%
Top 20 holdings as at 30 April 2016
Holding	Sector	% of Portfolio
Yes Bank	Financials	4.9%
Jyothy Laboratories	Consumer Staples	4.4%
Kajaria Ceramics	Industrials	4.4%
Federal Bank	Financials	4.1%
Indusind Bank	Financials	4.0%
Dewan Housing	Financials	4.0%
PI Industries	Materials	3.8%
Divis Laboratories	Healthcare	3.6%
City Union	Financials	3.3%
The Ramco Cements	Materials	3.2%
Dish TV India	Consumer Discretionary	3.1%
Berger Paints India	Materials	3.1%
Exide Industries	Consumer Discretionary	3.1%
Motherson Sumi Systems	Consumer Discretionary	3.0%
Finolex Cables	Industrials	2.8%
Sobha Developers	Financials	2.7%
Tech Mahindra	IT	2.6%
Max Financial Services	Financials	2.5%
Essel Propack	Materials	2.5%
Emami	Consumer Staples	2.5%
Portfolio analysis by market capitalisation size as 30 April 2016
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < INR60bn)	18	34.4%
Mid Cap (INR60bn < M/Cap < INR250bn)	14	39.2%
Large Cap (M/Cap > INR250bn)	7	22.2%
Total Equity Investment	39	95.8%
Net Cash		4.2%
Total Portfolio	39	100.0%

 

END

 

 

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