Net Asset Value(s)

India Capital Growth Fund Limited
10 July 2006


India Capital Growth Fund                                         FINAL 10.07.06

30 June, 2006 NAV Statement

India Capital Growth Fund Limited (the 'Company')

10 July 2006

Net Asset Values

The Company announces its net asset values per share as at 30 June 2006:

Net asset value per share - undiluted               84.71p

Net asset value per share - fully diluted           87.26p

Progress Update

The Market Environment

During most of June Indian stock markets continued to fall, especially in small
cap companies. However, the large cap BSE Sensex recovered sharply in the last
week of June ending with a 2% gain over the month. The BSE Small Cap index ended
the month down 15.8%.

Table 1. Period    BSE Sensex (% Change)     BSE Small Cap Index (% Change)
10 May to 30 June           -15.9%                      -31.4%
31 May to 30 June             2.0%                      -15.8%


A key feature post 10 May (when the market peaked) is high daily volatility
shown in Table 2 and Table 3 below.

Table 2.       Average absolute daily change BSE      Average absolute daily
Period                     Sensex (%)                        change
                                                      BSE Small Cap Index (%)
1 Jan to 10 May               0.9%                       0.9%
11 May to 30 June             2.6%                       3.0%



Higher volatility is expected to continue as uncertainty continues about the
monsoon, forthcoming corporate quarterly results due mid July and rising
interest rates. While the monsoon has so far been below average, earnings
outlook for most companies remains intact despite rising interest rates.


During June the Rupee strengthened against Sterling, moving up 3.53%. Since 1
Jan 2006 the Rupee has depreciated by 7.77% against Sterling.


The Small and Mid Cap Portfolio


Advantage has been taken of the market downturn in June with a focus on
increasing the stakes in existing investments. As at 30 June the portfolio
contained 29 listed small and mid cap companies across a broad spread of
industry sectors. The portfolio is expected to be predominantly invested in
small and mid-caps by the end of the year.


Unlisted Investment


On 6 July the first unlisted investment was completed, with an investment of INR
50 million (GBP 650,000, representing 0.9% of portfolio) in Infinity India
Advisers Pvt Limited. Infinity is the first Indian film completion guarantee
company, focused on the large domestic film industry and run by a team
experienced in both movie production and finance. As this investment was made on
3 July it is not reflected in the 30 June NAV.


Large Cap


The large cap portfolio is unchanged from 31 May. The portfolio includes three
large cap banks (9.6% of portfolio) which have continued to under-perform
although they trade at an average Price to Book ratio of 0.87. It is believed
that the banking sector offers an attractive exposure to the growing domestic
economy and that the prospects for the banking sector (low NPAs, continued
corporate and retail lending growth) remain sound.


The two other large cap investments made during the first quarter of this year
are Infosys (5.7% of portfolio) and Hindalco (3.4%). Both these companies have
strong fundamentals and the investment was at prices that it is believed offer
attractive upside. It is expected, however, that these will be sold as funds are
deployed into the core small and mid cap portfolio.


Summary of Holdings at 30 June 2006 by Size

Category                   No. of Companies             % of Portfolio
Small and Mid Cap                 29                     46.9%
Large Cap                          5                     18.7%
Total Investments                 34                     65.6%
Cash                                                                      34.4%



Small and Mid Cap Holdings at 30 June 2006 by Sector

Sector Summary                                                   % of Portfolio
Engineering / Other Manufacturing                                          8.0%
Housing & Construction                                                     5.1%
Auto Comp                                                                  5.9%
Steel / Iron Ore                                                           4.9%
Textiles                                                                   3.9%
Shipping                                                                   3.4%
Sugar                                                                      3.0%
Cement                                                                     2.4%
Electricals / Lighting Systems                                             2.4%
Agro Chemicals                                                             2.3%
Airlines                                                                   1.9%
Hotels                                                                     1.4%
Housing Finance                                                            1.2%
Other                                                                      1.1%



Top 10 Holdings at 30 June 2006

Holding              Sector                                      % of Portfolio
Infosys              Large Cap IT                                          5.7%
IDBI                 Large Cap Bank                                        5.4%
Varun Shipping       Shipping                                              3.4%
Hindalco             Large Cap Non-Ferrous Metals                          3.4%
Mahindra Ugine       Auto Components                                       3.2%
Mawana Sugar         Sugar                                                 3.0%
JSW Steel            Steel                                                 2.9%
Kirloskar Ferrous    Auto Components                                       2.6%
Bank Of India        Large Cap Bank                                        2.6%
Madras Cement        Cement                                                2.4%



10 July 2006


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