Net Asset Value(s)

RNS Number : 1916L

India Capital Growth Fund Limited

07 January 2016

 



7 January 2016

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

Net Asset Value statement at 31 December 2015

Net Asset Value

The Company announces its Net Asset Value per share as at 31 December 2015 was 80.74 pence.

In December the Net Asset Value (NAV) was up 3.1% in Sterling terms, whilst the BSE Mid Cap Index was up 3.5%, delivering an under performance against the notional benchmark of 0.4%. Against Ocean Dial's Composite Index, ICGF was flat. In local currency terms, the NAV was up 1.0% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Berger Paints (up 22.1%), Voltas (up 12.4%), Dewan Housing (up 5.3%) and City Union Bank (up 7.5%). Negative attribution came from Gujarat Pipavav Port (down 12.5%), Dish TV (down 6.1%) and Yes Bank (down 5.5%).

The Company also announces its fully diluted NAV per share as at 31 December 2015 was 74.16 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.

Market and economic update

December saw large caps underperform; the BSE Sensex was down 0.1% whilst the BSE Mid Cap Index was up 1.4% in Rupee terms. Foreign Institutional Investors (FIIs) were net buyers for the month (US$35m) but not to the same extent as domestic institutional investors who were net buyers to the tune of US$1bn. The currency was stable and positive; appreciating 2.0% against Sterling and 0.8% against the US Dollar.

Consumer Price Inflation in November rose to 5.4% compared to 5.0% in the previous month driven by an increase in food prices. Food inflation is likely to remain under pressure in the short term as the previously favourable base effect diminishes. Moreover, unseasonal rains and heavy flooding in Tamil Nadu (South India) have potentially damaged the upcoming winter crop. Higher food prices should at least partially be offset by lower fuel costs with Brent Crude Oil falling 17.6% in December.

On the political front the Winter Session of Parliament was a disappointment. The Government was unable to pass the Goods and Services Tax bill as well as other reforms due to an obstinate opposition in the Upper House which is dominated by the Congress Party. The Government will look to build consensus in advance of the next parliamentary session which starts in the last week of February, whilst continuing to use its executive powers to govern the country.

Portfolio analysis by sector as at 31 December 2015
Sector	No. of Companies	% of Portfolio
Financials	9	26.9%
Industrials	7	14.9%
Consumer Discretionary	5	14.5%
Materials	5	13.0%
Healthcare	4	10.4%
Consumer Staples	4	10.0%
IT	3	6.5%
Total Equity Investment	37	96.2%
Net Cash		3.8%
Total Portfolio	37	100.0%
Top 20 holdings as at 31 December 2015
Holding	Sector	% of Portfolio
Dewan Housing	Financials	4.6%
Jyothy Laboratories	Consumer Staples	4.4%
Kajaria Ceramics	Industrials	4.3%
Federal Bank	Financials	3.9%
Divis Laboratories	Healthcare	3.8%
PI Industries	Materials	3.7%
Indusind Bank	Financials	3.6%
Max India	Financials	3.4%
Berger Paints India	Materials	3.4%
Motherson Sumi Systems	Consumer Discretionary	3.4%
Dish TV India	Consumer Discretionary	3.3%
City Union Bank	Financials	3.1%
Exide Industries	Consumer Discretionary	2.9%
Sobha Developers	Financials	2.8%
Tech Mahindra	IT	2.8%
The Ramco Cements	Materials	2.7%
Mahindra CIE Auto	Consumer Discretionary	2.5%
Lupin	Healthcare	2.5%
Ajanta Pharma	Healthcare	2.5%
Balkrishna Industries	Consumer Discretionary	2.4%
Portfolio analysis by market capitalisation size as 31 December 2015
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap < INR60bn)	14	26.5%
Mid Cap (INR60bn < M/Cap<INR250bn)	15	45.8%
Large Cap (M/Cap > INR250bn)	8	23.9%
Total Equity Investment	37	96.2%
Net Cash		3.8%
Total Portfolio	37	100.0%

 

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