Replacement - Net Asset Value(s)

RNS Number : 6004J

India Capital Growth Fund Limited

08 April 2015

 



The following amendment has been made to the Net Asset Value announcement released on 7 April 2015 at 14:32 under RNS No 5155J.

The date of the diluted NAV per share has been amended from 28 February 2015 to 31 March 2015.

All other details remain unchanged.

The full amended text is shown below.

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7 April 2015

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

Net Asset Value statement at 31 March 2015

Net Asset Value

The Company announces its Net Asset Value per share as at 31 March 2015 was 83.73 pence.

In March the Net Asset Value (NAV) was up 2.0% in Sterling terms, whilst the BSE Mid Cap Index was up 1.1%, delivering an outperformance against the notional benchmark of 0.9%. Against Ocean Dial's Composite Index, ICGF out performed by 1.6%. In local currency terms, the NAV was down 1.2% for the month.

The Company also announces its fully diluted NAV per share as at 31 March 2015 was 76.15 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 Lupin (up 15.0%), Motherson Sumi Systems (up 13.9%) and Ajanta Pharma (up 9.7%). Negative attribution came from Tech Mahindra (down 12.0%), Dewan Housing (down 5.3%) and Sobha Developers (down 15.7%).

Market and economic update

Indian equity markets showed weak performance in March; the BSE Sensex was down 4.8% whilst the BSE Mid Cap Index was down 2.0%. Foreign Institutional Inflows were positive (US$1.5bn for the month), and as such the selling pressure was driven by domestic institutions. The Rupee depreciated by 1.1% against the US Dollar and appreciated by 4.2% against Sterling.

The Reserve Bank of India (RBI) surprised the market for a second time this year with a 25bps intra-meeting rate cut four days after the Indian Government's FY15 Union Budget. CPI Inflation at 5.4% for February 2015 was higher than expected but still remains within the RBI's January 2016 target of 6% and India's trade deficit narrowed to a 17-month low of US$6.9bn in February as the value of oil imports declined.

It was a positive month for the Government having gone through a tough period in terms of pushing reforms through Parliament. It successfully raised US$18bn in the latest round of telecom spectrum auctions, which will help in reducing the fiscal deficit. The first half of the Budget Session of Parliament was very productive with 14 bills passed in the Lok Sabha (lower house). In the Rajya Sabha (upper house), where the Government had struggled in the Winter Session to enact legislation, it was able to build consensus and approve the Insurance Bill which allowed foreign direct investment limits in the sector to increase from 26% to 49%. This was followed by two long-pending legislative approvals - the Mines and Minerals (Development and Regulation) Amendment Bill and the Coal bill. The next and most contentious piece of legislation on the agenda is an amendment to the Land Acquisition Act. The Government will be closely observed on how it tackles this when the Parliament resumes on 20 April.

Portfolio analysis by sector as at 31 March 2015
Sector	No. of Companies	% of Portfolio
Financials	8	23.5%
Industrials	7	19.5%
Consumer Discretionary	4	12.7%
Healthcare	4	10.5%
Materials	4	10.3%
Consumer Staples	4	9.8%
IT	3	7.3%
Energy	1	1.1%
Total Equity Investment	35	94.7%
Net Cash		5.3%
Total Portfolio	35	100.0%
Top 20 holdings as at 31 March 2015
Holding	Sector	% of Portfolio
Motherson Sumi Systems	Consumer Discretionary	4.6%
Federal Bank	Financials	4.6%
Dewan Housing	Financials	4.3%
Kajaria Ceramics	Industrials	4.2%
PI Industries	Materials	4.0%
Jyothy Laboratories	Consumer Staples	4.0%
Lupin	Healthcare	3.8%
Tech Mahindra	IT	3.7%
Yes Bank	Financials	3.6%
Indusind Bank	Financials	3.4%
Exide	Industrials	3.2%
Emami	Consumer Staples	3.2%
Max India	Financials	3.1%
Gujarat Pipavav Port	Industrials	3.1%
Eicher Motors	Industrials	3.0%
Divi's Laboratories	Healthcare	3.0%
Dish TV India	Consumer Discretionary	3.0%
Ajanta Pharma	Healthcare	2.9%
Balkrishna Industries	Consumer Discretionary	2.9%
Berger Paints India	Materials	2.7%
Portfolio analysis by market capitalisation size as 31 March 2015
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR60bn)	11	18.3%
Mid Cap (INR60bn <M/Cap<INR250bn)	17	52.5%
Large Cap (M/Cap > INR250bn)	7	23.9%
Total Equity Investment	35	94.7%
Net Cash		5.3%
Total Portfolio	35	100.0%

 

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