Net Asset Value(s)

RNS Number : 0525Y
India Capital Growth Fund Limited
04 September 2015
 



4 September 2015

 

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

 

Net Asset Value statement at 31 August 2015

 

Net Asset Value

 

The Company announces its Net Asset Value per share as at 31 August 2015 was 75.73 pence.

 

In August the Net Asset Value (NAV) was down 7.1% in Sterling terms, in line with the notional benchmark, the BSE Mid Cap Index, which was also down 7.1%. Against Ocean Dial's Composite Index, ICGF out performed by 0.6%. In local currency terms, the NAV was down 4.8% for the month.

 

The Company also announces its fully diluted NAV per share as at 31 August 2015 was 70.82 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 Divi's Laboratories (up 20.5%), PI Industries (up 9.8%), Lupin (up 14.1%) and Neuland Laboratories (up 21.7%). Negative attribution came from Yes Bank (down 16.8%), Gujarat Pipavav Port (down 27.6%) and Motherson Sumi Systems (down 12.6%).

 

Market and economic update

 

Indian equity markets closed lower for the month as part of a broader global correction; the BSE Sensex fell 6.5% whilst the BSE Mid Cap Index was down 4.8%. Foreign Institutional Investors (FIIs) were net sellers (US$2.6bn for the month), while domestic institutions turned net buyers. The Rupee also showed weakness, depreciating by 2.5% against Sterling and 3.6% against the US Dollar.

 

India's Q1FY16 (April-June) GDP registered 7.0% growth which was lower than consensus, mainly due to slower services sector expansion (8.9% compared to 10.2% in FY15). However agriculture and industrial sector growth at 1.9% and 6.5% respectively, were in line with forecasts.

Government capex for the first four months of FY16 registered at $4bn as part of an increase in planned expenditure, the majority of which was spent on road infrastructure. This is 39% higher than the same period last year and reflects the Government's efforts to revive the economy via an investment led recovery.

 

Consumer Price Inflation (CPI) in July, at 3.8%, was lower than expected as a result of falling food prices. Whilst a deteriorating level of rainfall during this year's Monsoon remains a concern, the lower CPI level increases the probability of further monetary easing this year.

 

A further positive for the month was an announcement from the Finance Minister that the Indian Government has accepted the recommendation of the AP Shah Committee that claims from the Indian Revenue Service for minimum alternate tax (MAT) from FIIs are not payable.

Portfolio analysis by sector as at 31 August 2015




Sector

No. of Companies

% of Portfolio

Financials

8

23.6%

Industrials

7

17.4%

Consumer Discretionary

5

15.1%

Materials

4

10.9%

Consumer Staples

4

10.8%

Healthcare

4

10.8%

IT

3

5.9%

Energy

0

0.0%

Total Equity Investment

35

94.5%

Net Cash


5.5%

Total Portfolio

35

100.0%




Top 20 holdings as at 31 August 2015




Holding

Sector

% of Portfolio

Dewan Housing

Financials

4.6%

Jyothy Laboratories

Consumer Staples

4.5%

Federal Bank

Financials

4.4%

PI Industries

Materials

4.2%

Divi's Laboratories

Healthcare

4.0%

Max India

Financials

3.7%

Motherson Sumi Systems

Consumer Discretionary

3.6%

Kajaria Ceramics

Industrials

3.6%

Yes Bank

Financials

3.6%

Dish TV India

Consumer Discretionary

3.4%

Emami

Consumer Staples

3.4%

Indusind Bank

Financials

3.3%

Exide

Industrials

3.1%

Tech Mahindra

IT

3.0%

Mahindra CIE Auto

Consumer Discretionary

3.0%

Ajanta Pharma

Healthcare

2.8%

Balkrishna

Consumer Discretionary

2.8%

Eicher Motors

Industrials

2.8%

Berger Paints India

Materials

2.8%

Lupin

Healthcare

2.7%




Portfolio analysis by market capitalisation size as 31 August 2015




Market capitalisation size

No. of Companies

% of Portfolio

Small Cap (M/Cap <INR60bn)

1

2.8%

Mid Cap (INR60bn <M/Cap<INR250bn)

8

21.5%

Large Cap (M/Cap > INR250bn)

26

70.2%

Total Equity Investment

35

94.5%

Net Cash


5.5%

Total Portfolio

35

100.0%

 


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