Monthly Fact Sheet

RNS Number : 2973T

India Capital Growth Fund Limited

03 June 2009

 



India Capital Growth Fund Limited

03 June 2009

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

31 May 2009 NAV Statement

Net Asset Values

The Company announces its net asset values per share as at 31 May 2009:

Net asset value per share - undiluted                           51.53p

Net asset value per share - fully diluted                       51.53p

Update

As anticipated in earlier commentaries, markets were highly volatile around the Indian General Election. In an unexpected result, the Congress party coalition was returned to power with a strong mandate and the communist parties lost more than half their previous seats. The markets rose sharply, and on the first day of trading after the results were announced, the market closed early as the market wide circuit breaker was reached. FIIs were strong buyers, investing USD 4,145 million in Indian equities, the highest monthly inflow since October 2007. The immediate euphoria has subsided, but the overall upward trend has continued, albeit with some continued volatility. For the month as a whole the BSE Sensex index of larger stocks rose 28.3%.

Small and mid-cap stocks which had been harder hit in the market fall also responded strongly, with the BSE Small Cap Index up 51.9% and the BSE Mid-Cap Index up 43.9% as investors looked for value. The Rupee however depreciated 2.7% against Sterling reflecting a continued fall in exports at a rate faster than the fall in imports. 

The Company's NAV overall was up 33.4% in the month, and advantage was taken of the stronger markets to exit partially from two smaller investments. 

For the Indian economy, real GDP growth for the financial year to 31 March 2009 was 6.7%, down from 9% for the year to 31 March 2008, but considerably better than much of the rest of the world. Wholesale price inflation was 0.61% for the week to May 16. This positive macro data was somewhat offset by a contraction in industrial production by an annualised 2.3 % in March 2009.  Looking forward, the election result should provide political stability for the next five years and allow the government to address the medium term challenges. Recent GDP growth has occurred on the back of government spending and agriculture, while growth has been low or negative in much of construction and manufacturing. Government spending and the fiscal deficit will also require attention. Nevertheless we remain cautiously optimistic.

Brief information on the principal investee companies, updated monthly, is contained in the Presentation on the Company's web site (www.indiacapitalgrowth.com).

Analysis of holdings at 31 May 2009 

Sector Summary	No. of Companies	% of Portfolio
Textiles	2	16.9%
Financial Services	3	13.1%
Transportation	2	11.9%
Media	2	9.3%
Pharmaceutical services and packaging	1	9.1%
Process Controls	1	8.5%
IT	3	5.8%
Housing & Construction	2	4.8%
Offshore Oil and Gas Services	1	4.4%
Engineering / Manufacturing	2	3.8%
Hotels	1	3.2%
Others	1	1.1%
Total Investment	21	91.9%
Net Cash		8.1%
Total Portfolio		100.0%

 Top 10 holdings at 31 May 2009

Holding	Sector	% of Portfolio
S. Kumars Nationwide	Textiles	13.2%
Bilcare	Pharmaceutical services and packaging	9.1%
ICSA India	Process Controls	8.5%
Varun Shipping	Transportation	8.4%
Marwadi Shares and Finance	Financial Services	7.2%
Prime Focus	Media	6.5%
Great Offshore	Offshore Oil and Gas Services	4.4%
Bank Of Rajasthan	Financial Services	3.8%
Grabal Alok Impex	Textiles	3.7%
Spicejet	Transportation	3.5%

Portfolio breakdown by size at 31May 2009

Size	No. of Companies	% of Portfolio
Small Cap	17	76.5%
Mid Cap	2	8.2%
Unlisted	2	7.2%
Cash		8.1%
Total	21	100.0%

 

END

 

 

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