Replacement Net Asset Value(s)

RNS Number : 1901K

India Capital Growth Fund Limited

11 July 2011

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

11 July 2011

30 June 2011 NAV Statement - correction

It has come to our attention that the analysis of the portfolio by size at 30 June 2011 attached to the NAV Announcement on 6 July 2011 (RNS Number 9141J) contained errors. The announcement is reproduced below with the corrected table. There is no change in the announced net asset value per share as at 30 June 2011 of 59.83 pence, nor in any of the other data tables.

Net Asset Values

The Company announces its net asset value per share as at 30 June 2011 was 59.83 pence

Portfolio Update

During June the Net Asset Value (NAV) of India Capital Growth Fund Limited rose 0.8% in Sterling terms and fell 2.6% in local currency terms. Over the period the BSE Midcap Index was down 0.8% in INR terms, whilst the main board, the BSE Sensex, rose 1.9%.

June was an eventful month for Indian equities. The Reserve Bank of India raised interest rates a further 25bps to 7.25% and took the long awaited but bold decision to raise diesel and cooking fuel prices. This will add to inflationary pressure but reduce the government's fiscal burden. Towards the end of the month the market rallied as sentiment improved on the back of falling crude and commodity prices. The short end of the yield curve has started to soften indicating interest rate may be nearing their peak; and the monsoon is currently delivering rainfall in line with long term averages.

The disappointing performance of the portfolio resulted from a 21% fall in S. Kumars Nationwide, a 4% position. The market was spooked by rumours suggesting the company's bankers were selling shares pledged by the promoter. Our conversations with the management assure us that the company's debt is secured on the fixed assets of the company only. The shares remain with the banks as a consequence of the voluntary restructuring undertaken by the company in 2009, and we are assured that the pledged shares will be returned in the near future. The debt to equity ratio is 1.2 x and the plan is to reduce debt through the sale of Reid and Taylor later this year. In other areas Prime Focus fell 4.5% whilst United Phosphorus gave back some of its recent gains falling 5.9%. Positive attribution towards the funds' performance came from Jain Irrigation, a manufacturer of micro irrigation systems which rose 1.4%, Jammu & Kashmir Bank up 4.5% and Rallis India, a manufacturer of pesticides and fertilizers which rose 8.2%.

Analysis of holdings at 30 June 2011

Sector Summary	No. of Companies	% of Portfolio
Financials	13	35.2%
Industrials	9	18.6%
Consumer Discretionary	3	11.9%
Materials	5	11.1%
Health Care	2	5.3%
IT	3	4.7%
Telecom Services	2	3.0%
Consumer Staples	2	2.6%
Total Equity Investment	39	92.4%
Net Cash		7.6%
Total Portfolio		100.0%

Top 10 equity holdings at 30 June 2011

Holding	Sector	% of Portfolio
Marwadi Shares and Finance	Financials	9.9%
Prime Focus	Consumer Discretionary	6.9%
United Phosphorus	Materials	4.2%
Bilcare	Health Care	4.2%
S. Kumars Nationwide	Consumer Discretionary	4.1%
Sintex Industries	Industrial	3.8%
Jain Irrigation	Industrial	3.3%
Federal Bank	Financials	3.2%
Yes Bank	Financials	3.0%
Indian Bank	Financials	2.8%

Portfolio breakdown by size at 30 June 2011

Size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR 15bn)	11	24.5%
Mid Cap (INR 15bn <M/Cap<INR 100bn)	21	48.4%
Large Cap (M/Cap > INR 100bn)	5	9.6%
Unlisted	2	9.9%
Cash/Cash Equivalent		7.6%
Total	39	100.0%