Net Asset Value(s)

RNS Number : 3765S
India Capital Growth Fund Limited
07 July 2015
 



7 July 2015

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

Net Asset Value statement at 30 June 2015

Net Asset Value

The Company announces its Net Asset Value per share as at 30 June 2015 was 77.80 pence.

In June the Net Asset Value (NAV) was down 3.6% whilst the BSE Mid Cap Index was down 2.7% (both in Sterling terms). Thus the NAV underperformed the notional benchmark by 0.9% and Ocean Dial's Composite Index by 0.9%. In local currency terms, the NAV fell 1.3% for the month.

The Company also announces its fully diluted NAV per share as at 30 June 2015 was 72.20 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 Jyothy Labs (up 7.6%), Ramkrishna Forgings (up 6.5%), Dish TV (up 5.0%) and Federal Bank (up 3.4%). Negative attribution came from Kajaria Ceramics (down 13.8%), Tech Mahindra (down 13.8%) and Sobha Developers (down 16.9%).

Market and economic update

In June India's equity markets closed marginally down for the month; the BSE Sensex slipped 0.2% whilst the BSE Mid Cap Index fell 0.3%. Foreign Institutional Investors continued to lighten up, selling US$970m of equities over the month, while domestic institutions remained net buyers. The Indian Rupee depreciated 2.4% against Sterling but appreciated marginally against the US Dollar by 0.3%.

May's CPI data recorded 5.0% compared to 4.9% in April, well below the Reserve Bank's current target of 6% for end FY16. In June the rainfall has been well above average, partially abating some fears of another poor monsoon. Though the rains have started well, July and August remain crucial months. Surprisingly, the Government announced a nominal 3.7% year on year increase in minimum support prices for the paddy rice crop (June to October), well below the price increases of the previous administration. This has allayed market fears of a populist rerun as well as reducing the impact on future food prices.

The market was surprised positively by Industrial Production which grew 4.1% in April. Encouragingly this data was driven by 5.1% growth in manufacturing, in which the production of capital goods expanded by 11.1%. This is a volatile data series, but is supported by healthy indirect tax collections for April and May. In addition, consumer durables posted 1.3% growth year on year in April, compared to -4.7% in March and is positive for the first time in over two years.

 

Portfolio analysis by sector as at 30 June 2015




Sector

No. of Companies

% of Portfolio

Financials

8

23.4%

Industrials

7

18.6%

Consumer Discretionary

5

15.7%

Consumer Staples

4

10.4%

Materials

4

10.2%

Healthcare

4

10.0%

IT

3

5.3%

Energy

1

0.9%

Total Equity Investment

36

94.5%

Net Cash


5.5%

Total Portfolio

36

100.0%

 

 



Top 20 holdings as at 30 June 2015




Holding

Sector

% of Portfolio

Federal Bank

Financials

5.1%

Jyothy Laboratories

Consumer Staples

4.2%

Motherson Sumi Systems

Consumer Discretionary

4.1%

Dewan Housing

Financials

3.9%

Dish TV India

Consumer Discretionary

3.9%

Kajaria Ceramics

Industrials

3.8%

PI Industries

Materials

3.8%

Yes Bank

Financials

3.7%

Emami

Consumer Staples

3.6%

Max India

Financials

3.5%

Eicher Motors

Industrials

3.4%

Indusind Bank

Financials

3.3%

Divi's Laboratories

Healthcare

3.1%

Balkrishna Industries

Consumer Discretionary

3.1%

Lupin

Healthcare

3.1%

Ajanta Pharma

Healthcare

3.0%

Tech Mahindra

IT

2.8%

Gujarat Pipavav Port

Industrials

2.8%

Exide

Industrials

2.6%

Berger Paints India

Materials

2.5%




 

 



Portfolio analysis by market capitalisation size as 30 June 2015




Market capitalisation size

No. of Companies

% of Portfolio

Small Cap (M/Cap <INR60bn)

12

19.1%

Mid Cap (INR60bn <M/Cap<INR250bn)

16

49.6%

Large Cap (M/Cap > INR250bn)

8

25.8%

Total Equity Investment

36

94.5%

Net Cash


5.5%

Total Portfolio

36

100.0%

 

 


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