Net Asset Value(s)

RNS Number : 4170Y

India Capital Growth Fund Limited

04 July 2008

 



India Capital Growth Fund Limited

04 July 2008

 

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

30 June 2008 NAV Statement

Net Asset Values

The Company announces its net asset values per share as at 30 June 2008:

Net asset value per share - undiluted     67.38 p

Net asset value per share - fully diluted    67.38 p

Progress Update

June has been one of the most difficult months for the Company.  NAV was down 22.3%.  A sharp rise in oil prices, a subsequent increase in inflation (11.42% for the week ended 14 June, its highest level since February 1995), higher interest rates (the RBI repo rate is now 8.5%) and continued selling by FIIs (who sold a net USD 2.5 billion in June) resulted in big falls in Indian equities. During the month of June the large cap BSE Sensex fell by 18%, while the BSE mid and small cap indices fell 20.3% and 17.6%, and the Indian Rupee depreciated by 1.7% against sterling.

FII's have now sold USD 6.3 billion during the first six months of 2008 compared to a net inflow of USD 4.3 billion during the first six months of 2007 and a net inflow of USD 17.2 billion for the full year of 2007.

The effects of these negative economic figures on Investee companies are still to be seen. Results for the financial year ended 31 March 2008 are now out for all but two Investee company and excluding these two companies the average Operating Revenues and PAT growth was 71% and 70% respectively. 

S Kumars Nationwide Limited ('SKNL'), the Company's largest single holding, announced an investment by GIC Singapore into its premium worsted suiting business Reid & Taylor ('R&T'). Indivest Pte Ltd, an affiliate of GIC Special Investments ('GIC SI') has agreed to invest in R&T through a fresh issue of shares and warrants. Post-conversion, GIC SI would own 25.4% of R&T. The transaction values SKNL's 74.4% stake at approximately Rs 97 per fully diluted SKNL share. Despite this, SKNL shares closed at Rs 81, down 28.8% on the month.

Valuations in a number of Investee companies are now at extremely attractive levels and the Company continues to build up its stake in two recent additions to the portfolio as well as in three existing Investee companies. Cash as on 30 June was GBP 5.25 mn. 

  Analysis of holdings at 30 June 2008 

Sector Summary          No. of Companies          % of Portfolio

Textiles          2            17.0%

Financial Services          3            12.0%

Media          2            11.0%

Housing & Construction          5                   10.2%

Transportation          2            8.5%

IT              3            8.3%

Oil & Gas               1            4.9%

Engineering / Manufacturing      3             3.9%

Electrical & Lighting          1             2.6%

Others          5            11.2%

Total investments          27            89.6%

Cash                    10.4%

Total Portfolio                    100.0%

Top 10 holdings at 30 June 2008

Holding                  Sector      % of Portfolio

S Kumars Nationwide              Textiles              12.1%

Prime Focus              Media               7.9%

Marwadi Shares and Finance              Financial Services          6.8%

Varun Shipping                    Shipping              6.0%

Hindustan Oil Exploration              Oil and Gas          4.9%

Grabal Alok      Textile                 4.9%

IT People      IT                     4.3%

Logix Microsystems                Software              3.9%

Akruti City                       Housing and Construction      3.7%

Viceroy Hotels                    Hotels              3.2%

Portfolio breakdown by size at 30 June 2008

Size                    No. of Companies            % of Portfolio

Small Cap                    18               57.9%

Mid Cap                          5              20.5%

Large Cap                       1              3.7%

Unlisted                           3              7.5%

Cash                                      10.4%

Total                                       100.0%

 

END

 

 

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