Net Asset Value(s)

RNS Number : 4855M
India Capital Growth Fund Limited
07 May 2015
 



7 May 2015

 

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

 

Net Asset Value statement at 30 April 2015

 

Net Asset Value

 

The Company announces its Net Asset Value per share as at 30 April 2015 was 76.13 pence.

 

In April the Net Asset Value (NAV) was down 9.1% in Sterling terms, whilst the BSE Mid Cap Index was down 7.2%, delivering an under performance against the notional benchmark of 1.9%. Against Ocean Dial's Composite Index, ICGF underperformed by 1.2% and in local currency terms, the NAV was down 3.6% for the month.

 

The Company also announces its fully diluted NAV per share as at 30 April 2015 was 71.08 pence. 

 

The above fully diluted NAV assumes that the 37,500,710 Subscription Shares rights will be exercised at their subscription price of 61 pence. The Subscription Shares have a subscription date of 6 August 2016. However, if at any time after 6 August 2015 the average middle market quotation for an Ordinary Share for at least 10 consecutive trading days is 5% or more above the subscription price, the Company has the right, (but not the obligation) by an announcement on a RIS to change the subscription date for exercise of the Subscription Shares to an earlier date (being a date not less than 30 days after the Company's announcement) that it is bringing forward the subscription date. In that event an announcement will be made on a RIS and a notice of the revised subscription date will be given to all holders of the Subscription Shares on the register at 5.00pm on the date falling three business days following the announcement of the revised subscription date.

 

Portfolio update

 

Positive attribution to the portfolio's performance came from Balkrishna Industries (up 19.6%), PI Industries (up 8.6%) and Yes Bank (up 2.9%). Negative attribution came from KPIT Technologies (down 44.2%), Indian Bank (down 19.3%) and Lupin (down 11.7%).

 

Market and economic update

 

Indian equity markets corrected further this month. The BSE Sensex was down 3.4% whilst the BSE Mid Cap Index fell 1.7% as sentiment was impacted by lacklustre earnings announcements for FY15 (year ended 31 March 2015) and continuing uncertainty surrounding two pieces of key legislation currently being debated in parliament; the first relating to amendments to the Land Acquisition Bill, and the second around the long awaited goods and services tax (GST) whilst negotiations are ongoing. In addition, foreign investors remain spooked by the potential imposition of minimum alternate tax (MAT) on overseas investors. In spite of these concerns, foreign equity flows were positive (US$1.9bn for the month), and domestic institutions were also net buyers. The currency fell 6.0% against Sterling and 1.4% against the US Dollar.

 

On a more positive note, India's CPI inflation was reported at 5.2% for March, lower than consensus expectations, as food inflation remained dormant. The February Index of Industrial Production (IIP) expanded by 5.0%, the highest in nine months, led by growth in mining up 2.5%, manufacturing, which expanded by 5.2%, and electricity production which grew by 5.9%.

 

The potential imposition of a retrospective tax on foreign portfolio investors (FPI) comes as a negative surprise. Since the brouhaha erupted, the Government has subsequently clarified that funds which invest in India via countries where a double taxation treaty (DTT) with India exists, such as Singapore and Mauritius, should not expect to be impacted. For those investors who are potentially impacted, i.e. those who invest from countries where no such DTT exists, further clarification should be forthcoming following a Supreme Court ruling expected later this year.

 



 

Portfolio analysis by sector as at 30 April 2015




Sector

No. of Companies

% of Portfolio

Financials

8

23.6%

Industrials

7

19.4%

Consumer Discretionary

4

13.1%

Materials

5

13.0%

Healthcare

4

10.0%

Consumer Staples

4

9.5%

IT

3

6.6%

Energy

1

1.0%

Total Equity Investment

36

96.2%

Net Cash


3.8%

Total Portfolio

36

100.0%

 

 

 

Top 20 holdings as at 30 April 2015




Holding

Sector

% of Portfolio

Federal Bank

Financials

4.7%

Motherson Sumi Systems

Consumer Discretionary

4.7%

PI Industries

Materials

4.5%

Dewan Housing

Financials

4.3%

Kajaria Ceramics

Industrials

4.2%

Yes Bank

Financials

3.8%

Tech Mahindra

IT

3.8%

Jyothy Laboratories

Consumer Staples

3.8%

Balkrishna

Consumer Discretionary

3.6%

Indusind Bank

Financials

3.3%

Max India

Financials

3.2%

Exide

Industrials

3.2%

Ajanta Pharma

Healthcare

3.1%

Emami

Consumer Staples

3.0%

Lupin

Healthcare

3.0%

Divi's Laboratories

Healthcare

3.0%

Eicher Motors

Industrials

3.0%

Gujarat Pipavav Port

Industrials

3.0%

Berger Paints India

Materials

2.9%

Dish TV India

Consumer Discretionary

2.9%




Portfolio analysis by market capitalisation size as 30 April 2015




Market capitalisation size

No. of Companies

% of Portfolio

Small Cap (M/Cap <INR60bn)

12

19.4%

Mid Cap (INR60bn <M/Cap<INR250bn)

17

53.5%

Large Cap (M/Cap > INR250bn)

7

23.3%

Total Equity Investment

36

96.2%

Net Cash


3.8%

Total Portfolio

36

100.0%

 


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