Net Asset Value(s)

India Capital Growth Fund Limited
06 February 2008


India Capital Growth Fund Limited

06 February 2008

31 January 2008 NAV Statement

India Capital Growth Fund Limited (the 'Company')

06 February 2008

Net Asset Values

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

Net asset value per share - undiluted         129.43 p

Net asset value per share - fully diluted     124.53 p

Progress Update

After the sustained bull run in the latter part of 2007 which peaked on 10th
January of this year, Indian markets  followed global equity markets and
suffered a large fall, triggered by a growing realisation that the sub prime
issues  in the US are deeper and more severe than had previously been admitted.
FIIs withdrew USD 3.2 billion from the market  in January, in contrast to their
net investment of USD 1.4 billion in December 2007. Liquidity was further
constrained  by the Reliance Power IPO (which received applications totaling
USD190 Bn for the USD3 Bn of shares on offer). While  the (Large cap) BSE Sensex
fell by 13%, the small and mid cap indices (BSE Small Cap and BSE Mid Cap) fell
further, by  24.2% and 20.7% respectively, a pattern mirroring market movements
in May 2006.

The undiluted NAV for the Company fell by 21.1% during the month, in line with
the sectors of the market in which the  Company invests.  We continue to believe
that the fundamentals for the companies within the portfolio are very sound, 
and recently released quarterly results have confirmed this. For 20 of the 22
companies in the portfolio, the average  top line and EPS growth for the quarter
ended 31 December 2007 over the corresponding quarter in 2006, were 56% and 49% 
respectively. (One company's results are still to come in, and those for the
final company are excluded as growth was  exceptionally high).

India has a low ratio of exports to GDP (15.2%) and the majority of the
portfolio companies are focused on the domestic  Indian market, which is
continuing to prosper, and, we believe, should be less affected than other
emerging markets by  a slowdown in the US or Europe.

Liquidity within the company had been increased a little before the major falls,
and thereafter there has been  relatively little change in the portfolio. It is
intended to continue this patient approach until the market settles,  although
the liquidity available will enable selective purchases to be made where we see
attractive prices in existing  portfolio companies or new ones which meet the
key investment criteria.

Analysis of holdings at 31 January 2008

Sector Summary                            No. of Companies       % of Portfolio

Media                                                    2                17.7%
Financial Services                                       4                17.4%
Housing & Construction                                   6                14.6%
Textiles                                                 2                13.7%
Transportation                                           2                 8.2%
Electrical & Lighting                                    1                 7.5%
IT                                                       3                 6.1%
Engineering / Manufacturing                              3                 3.5%
Others                                                   2                 4.2%
Total investments                                       25                92.9%
Cash                                                                       7.1%
Total Portfolio                                                          100.0%


Top 10 holdings at 31 January 2008

Holding                              Sector                      % of Portfolio

S Kumars Nationwide                  Textiles                             10.9%
Prime Focus                          Media                                 8.9%
IOL Broadband                        Media                                 8.8%
Asian Electronics                    Electricals and Lighting              7.5%
Prime Securities                     Financial Services                    7.2%
Gruh Finance                         Financial Services                    4.3%
SpiceJet                             Transportation                        4.1%
Varun Shipping                       Transportation                        4.1%
Arihant Foundations and Housing      Housing and Construction              4.0%
Marwadi Shares and Finance           Financial Services                    3.9%

Portfolio Break down by Size at 31 January 2008

Size                                  No. of Companies               % of Portfolio

Small Cap                                     12                             33.6%
Mid Cap                                       10                            51.4%
Large Cap                                      1                              3.6%
Unlisted                                       2                              4.3%
Cash                                                                         7.1%
Total                                                                       100.0%


                      This information is provided by RNS
            The company news service from the London Stock Exchange