Net Asset Value(s)

RNS Number : 5925H

India Capital Growth Fund Limited

06 November 2008

 



India Capital Growth Fund Limited

06 November 2008

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

31 October 2008 NAV Statement

Net Asset Values

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

Net asset value per share - undiluted     42.44 p

Net asset value per share - fully diluted   42.44 p

Update

October was an awful month for equities worldwide. In India the BSE Sensex was down 23.9% and the BSE Small Cap Index was down 32.5% on the month while the Company's NAV was down 23.8%. 

Markets continued to be driven by Foreign Institutional Investors ('FIIs') who sold a net USD 3.8bn during the month taking the total for FII net sales from 1 January 2008 to 30 September to USD 12.9 bn. The Rupee appreciated 5.2% against Sterling during the month, however it is still down 2.1% since 1 January 2008.  

While equity markets fell there was positive news on inflation which fell to 10.68% with a wide range of goods contributing to this fall. The Reserve Bank of India has also been active this month, cutting the repo rate, the key policy interest rate, by 150 bps to 7.5% and the CRR (cash reserve ratio, the amount of cash that banks need to keep with the RBI) by 350bps to 5.5%. The SLR (statutory liquidity requirement, the investment in government securities by banks) has been cut for the first time in 11 years by 100bps to 24%.

Companies in the financial services sector and those sensitive to the oil price have suffered but while there is some softening of growth rates the balance sheets and prospects of portfolio companies remain sound. The results so far announced for the quarter ended 30 September 2008 suggest that turnover and volumes are increasing over both the previous quarter and the comparable period in 2007, however in some sectors companies are seeing reduced margins, and are needing to adapt to a tougher trading environment .

The Company is talking advantage of current market levels to utilise its cash balances to increase its holdings in several core companies. As a consequence net cash at 31 October had reduced to GBP 1.76m, 5.5% of the portfolio.

 Analysis of holdings at 31 October 2008 

Sector Summary	No. of Companies	% of Portfolio
Financial Services	3	14.6%
Textiles	2	13.1%
Housing & Construction	5	12.0%
Pharmaceutical services and packaging	1	10.0%
Media	2	9.3%
Transportation	2	8.9%
Process controls	1	6.6%
IT	3	5.6%
Offshore oil & gas services	1	4.6%
Hotels	1	4.2%
Engineering / Manufacturing	3	3.6%
Others	2	2.0%
Total investments	26	94.5%
Net Cash		5.5%
Total Portfolio		100.0%

Top 10 holdings at 31 October 2008

Holding	Sector	% of Portfolio
Marwadi Shares and Finance	Financial Services	10.7%
Bilcare	Pharma Packaging	10.0%
S. Kumars Nationwide	Textiles	9.3%
Varun Shipping	Transport	7.0%
Akruti City	Housing and Construction	6.9%
Prime Focus	Media	6.9%
ICSA India	Process Controls	6.6%
Great Offshore	Offshore Oil and Gas Services	4.6%
Viceroy Hotels	Hotels	4.2%
Grabal Alok Impex	Textiles	3.8%

    Portfolio breakdown by size at 31 October 2008

Size	No. of Companies	% of Portfolio
Small Cap	21	71.6%
Mid Cap	2	11.5%
Unlisted	3	11.4%
Cash		5.5%
Total		100.0%

 

END

 

 

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