Net Asset Value(s)

RNS Number : 0130W

India Capital Growth Fund Limited

04 June 2008

 



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

04 June 2008

31 May 2008 NAV Statement

Net Asset Values

The Company announces its net asset values per share as at 31 May 2008:

Net asset value per share - undiluted   86.77 p

Net asset value per share - fully diluted    86.77 p

Progress Update

NAV was down by 10.0% in the month of which 5.9% was due to the deprecation of Indian Rupee against Sterling.  During the month the large cap BSE Sensex was down by 5%, while the BSE mid and small cap indices fell 5.3% and 7.3% respectively. FII's sold a net USD 1.2 billion in May compared to a net purchase of USD 267 million in April. Since the start of the year FIIs have sold a net USD 3.8 billion

Annual gross domestic product (GDP) growth to March 2008 was 9 percent helped by unexpectedly high fourth-quarter expansion. However inflation, based on WPI, rose to a 44 month high of 8.1 percent for the week ended May 17, up from 7.82 percent the previous week. The background to the Rupee depreciation against the US Dollar and Sterling is high oil prices (India imports most of its oil needs) and the net selling of equities by FIIs. 

16 out of 27 portfolio companies have announced their financial results to 31 March 2008. Excluding IOL Netcom, which is still in its development phase, average annual growth for the year ended 31 March 2008 in operating revenues is 65% and profit after tax is 102% over the previous year. 

We have added one new company to the portfolio, and we are building out the stake here as also in two other existing holdings. During the month S Kumars Nationwide ('SKNL') demerged its retail business, Brandhouse Retail and all shareholders of SKNL now own shares in Brandhouse on a pro rata basis. Brandhouse shares are expected to be listed by the end of June 2008, and in the meantime are included in Unlisted holdings. 

Analysis of holdings at 31 May 2008 

Sector Summary          No. of Companies          % of Portfolio

Textiles          2             17.2%

Housing & Construction          5                    12.5%

Financial Services          3              11.7%

Media          2             11.4%

IT              3                8.2%

Transportation          2             8.2%

Oil & Gas               1            4.1%

Engineering / Manufacturing      3            4.0%

Electrical & Lighting          1             3.4%

Others          5              8.7%

Total investments          27               89.4%

Cash                     10.6%

Total Portfolio                     100.0%

Top 10 holdings at 31 May 2008

Holding                  Sector      % of Portfolio

S Kumars Nationwide              Textiles               13.1%

Prime Focus              Media               7.2%

Varun Shipping              Transportation           5.7%

Marwadi Shares and Finance              Financial Services           5.4%

IOL Netcom                Media              4.2%

Akruti City                       Housing and Construction      4.2%

IT People      IT                    4.1%

Grabal Alok      Textile                4.1%

Logix Microsystems                Software               4.1%

Hindustan Oil Exploration               Oil and Gas          4.1%

Portfolio breakdown by size at 31 May 2008

Size                    No. of Companies            % of Portfolio

Small Cap                    15               47.1%

Mid Cap                          8               32.1%

Large Cap                       1               4.2%

Unlisted                           3                6.0%

Cash                                       10.6%

Total                                        100.0%

 

END

 

 

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