First Day Dealings

India Capital Growth Fund Limited
22 December 2005


   NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES,
                           CANADA, JAPAN OR AUSTRALIA

                    For release at 08:30 on 22 December 2005

                       India Capital Growth Fund Limited
                 ('India Capital Growth Fund' or the 'Company')

                                Admission to AIM

                    Placing by Arbuthnot Securities Limited

                               First Day Dealings

Dealings in the shares and warrants of India Capital Growth Fund commenced on
AIM this morning following a placing of 75 million ordinary shares in the
Company, undertaken by Arbuthnot Securities Limited on behalf of the Company at
100 pence per share with warrants attached on a one for five basis. The Company
will seek to provide long-term capital appreciation by actively investing in
companies based in India. Once fully invested, its investments will
predominantly be in listed small to mid-cap Indian companies with a smaller
proportion in unlisted Indian companies.

Key Information:

•   India Capital Growth Fund is a new closed-ended investment company
    registered and incorporated in Guernsey. Its investment objective is to
    provide long-term capital appreciation by investing, either directly or
    indirectly through its subsidiaries, predominantly in companies based in
    India. The investment policy permits the Group (being the Company and its
    Mauritian subsidiaries) to make investments in a range of equity and
    equity-linked securities of such companies. The Directors intend that, once
    fully invested, the Group's portfolio of investments will predominantly be
    in listed small to mid-cap Indian companies and a smaller proportion in
    unlisted Indian companies.


•   The Company has an experienced board of directors led by Micky Ingall, 
    the non-executive Chairman. He is, amongst other directorships, a
    non-executive director of Investors Capital Trust plc, Edinburgh Small 
    Companies Trust plc and Mid Wynd International Investment Trust plc. He has 
    40 years experience as broker and fund manager, having worked at Rathbone 
    Brothers plc as head of investment from 1985 to 1988, as chief executive 
    until 1997 and then as executive chairman until his retirement in 2003. The 
    other directors include Jamie Cayzer-Colvin, who is a director of Caledonia 
    Investments plc and a non-executive director of Rathbone Brothers, Polar 
    Capital and Eddington Capital; Ashok Dayal, who is a director of Glaxo 
    Smithkline Consumer Healthcare, Abbot India and Akzo Nobel Coatings and 
    chairman of the board of trustees of ING Mutual Fund; Robert King, who is a 
    director of Northern Trust International Fund Administration Services; and 
    Robin Nicholson who is a Director of First Pacific Company Limited, a Hong 
    Kong based listed investment and management company.

•   Polar Capital LLP is acting as fund manager to the Company pending receipt 
    by India Investment Partners Limited ('IIP') of the FSA authorisations 
    required to take over as fund manager. Polar has approximately £2
    billion of assets under management. The fund manager will manage the 
    Company's portfolio, subject to the overriding supervision of the Directors.

•   Caledonia Investments plc has subscribed for 22% of the ordinary shares of 
    the Company and also owns 43% of IIP, with the balance of the shares
    in IIP being owned by management.

•   The Company's capital will consist of a single class of ordinary
    shares, with associated warrants issued to Shareholders on Admission on the
    basis of one warrant for every five ordinary shares issued.

•   Arbuthnot Securities Limited is acting as nominated adviser and broker to 
    the Company.

• The Placing

  Placing price                                                 100 pence

  Number of Ordinary Shares in issue following the issue        75,000,000

  Market capitalisation at the issue price                      £75.0 million

  Gross proceeds of the issue                                   £75.0 million

  Net proceeds of the Placing to be received by the Company     £73.5 million

Commenting on the Admission, Micky Ingall, non-executive Chairman, said:

'We are delighted by the response to our successful capital raising and the
launch of this new fund. We have an excellent investment team, and the board
will be working closely with our fund manager to take full advantage of the
attractive opportunities that exist for investing in companies based in India.'

For further information please contact:

India Investment Partners Limited
James Winterbotham                                 Tel: [phone]

Caledonia Investments plc                          Tel: [phone]
Jamie Cayzer-Colvin
Tony Hambro

Arbuthnot Securities Limited                       Tel: [phone]
Rupert Stevenson
Alastair Moreton

College Hill                                       Tel: [phone]
Tony Friend
Richard Pearson

Arbuthnot Securities Limited, which is authorised and regulated by the Financial
Services Authority, is acting for the Company only and will not be responsible
to any other person for providing the protections afforded to customers of
Arbuthnot Securities Limited or for advising such person on the matters referred
to in this announcement.

This announcement is not an offer to sell or a solicitation of any offer to buy
the securities or warrants of India Capital Growth Fund Limited ('ICGF', such
securities, the 'Securities', and such warrants, the 'Warrants') in the United
States, Canada, Japan or Australia.

The Securities and Warrants have not been and will not be registered under the
US Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities Act
or an exemption from such registration is available. No public offering of
Securities or Warrants of ICGF is being made in the United States.

This announcement contains forward looking statements, that involve unknown
risk, uncertainties and other factors which may cause the actual results,
financial condition, performance or achievement of ICGF, or industry results to
be materially different from any future results, performance or achievements
expressed or implied by such forward looking statements. Factors that might
cause such a difference include, but are not limited to: whether the investment
objective of ICGF will be met; the value of the Indian equity securities and
Indian equity-linked securities in which ICGF invests; changes in economic
conditions in India; and any change in ICGF's tax status, or in taxation
legislation or in the interpretation or application of taxation legislation.
ICGF disclaims any obligation to update any such forward looking statements in
this document to reflect future events or developments.




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