REG - India CapitalGrwthFd - 2023 Redemption Facility Details

India Capital Growth FundAnnouncement

04/12/2023 07:00

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RNS Number : 4828V  India Capital Growth Fund Limited  04 December 2023

4 December 2023

 

 

 

India Capital Growth Limited

LEI: 213800TPOS9AM7INH846

 

2023 Redemption Facility Details

 

If Shareholders are in any doubt about the action they should take, they
should immediately consult their stockbroker, bank manager, solicitor,
accountant or other independent financial adviser who (if they are taking
advice inside the United Kingdom) is authorised under the Financial Services
and Markets Act 2000 or (if they are taking advice in a territory outside the
United Kingdom) is an appropriately authorised independent financial adviser.

 

Introduction

 

On 12 June 2020 Shareholders voted to introduce a redemption facility which
would operate for the first time on 31 December 2021 and every second year
thereafter. The redemption facility enables Shareholders to request the
redemption of part, or all, of their shareholding at the relevant Redemption
Point.  This announcement confirms the arrangements for the second Redemption
Point on 29 December 2023, which will enable Shareholders of Ordinary Shares
held at 6.00 p.m. on 29 September 2023 (the "Record Date") and held
continuously at all times since the Record Date to request redemption at an
exit discount of 3 per cent. (the "Exit Discount").

 

Introduction of the Buy Back Programme

 

Continuing to be mindful of the discount at which the Company's ordinary
shares trade, on 1 November 2023 the Company announced that it had entered
into a Buy Back Agreement with Shore Capital Stockbrokers Limited pursuant to
which up to £5 million was available for the purchase of ordinary shares
within agreed price parameters up until 29 December 2023. The Board is pleased
to see that the discount at which the ordinary shares trade has, since the
date of announcement of the Buy Back Agreement, narrowed from 13.5% to 4.9%.

 

Performance and Outlook

 

The Company's performance (NAV total return) is presently ranked first amongst
all UK listed Asian country specialist funds (not just those of India) over
one, three and ten years, with returns of 22.9%, 84.0% and 284.2% to 29
November respectively. The Board continues to work with Ocean Dial Asset
Management and AssetCo on marketing initiatives for the Company in order to
ensure that its share rating is reflective of its top record on performance.

 

Arrangements for 29 December 2023 Redemption Point

 

Under the redemption terms set out in article 132 of the Company's articles of
incorporation (the "Articles"), Shareholders may request redemptions at the 29
December 2023 Redemption Point (the "Redemption Point") for all or any of
their holding of Ordinary Shares held on the Record Date and held continuously
at all times since the Record Date.  Ordinary Shares for which valid
redemption requests have been received at the Redemption Point are referred to
as "Redemption Shares".

 

In order to implement the redemption and in accordance with the Articles, the
Company will notionally divide its assets and liabilities as at the Redemption
Point into two pools:

 

a)  the Redemption Pool, which will consist of cash and assets representing
the aggregate unaudited NAV attributable to the Redemption Shares as
calculated by the Administrator at the Redemption Point; and

 

b)  the Continuing Pool, which will contain all of the other cash, assets and
liabilities of the Company representing the aggregate unaudited NAV
attributable to the remaining Ordinary Shares (being those Ordinary Shares
which are not Redemption Shares).

 

The Redemption Price per Redemption Share shall be equal to the aggregate cash
received by the Company upon the realisation of the Redemption Pool less the
Exit Discount divided by the aggregate number of Redemption Shares. As
announced on 6 December 2021, the Board has determined that the Exit Discount
will be 3 per cent.

 

Shareholders should note that the Redemption Price per Redemption Share may be
materially different to the published, unaudited NAV per Ordinary Share at the
Redemption Point. This is largely because the realised value of the Redemption
Pool will be subject to movements in the Indian markets and to fluctuations in
the INR/GBP exchange rate.

 

The Company may seek to satisfy Redemption Requests by matching such requests
with demand for Ordinary Shares from incoming investors. In such
circumstances, the Company, on behalf of a Shareholder, will arrange, through
Shore Capital, the sale of some or all of the Ordinary Shares that are the
subject of a Redemption Request to an incoming investor at the Redemption
Price.

 

Other than in certain circumstances as set out in Article 132, a Redemption
Request once given cannot be withdrawn otherwise than with the prior consent
of the Company (which the Directors shall be entitled in their absolute
discretion to withhold).

 

Copies of the redemption request form can be obtained from the Company's
website: www.indiacapitalgrowth.com (http://www.indiacapitalgrowth.com) and
from the Company's Registrar and Receiving Agent, Neville Registrars Limited
of Neville House, Steelpark Road, Halesowen, West Midlands, B62 8HD (email
info@nevilleregistrars.co.uk (mailto:info@nevilleregistrars.co.uk) , telephone
0121 585 1131 or, if calling from outside the United Kingdom, on +44 121 585
1131 within usual business hours).

 

Duly completed redemption request forms must be delivered to the Receiving
Agent so as to be received by 3.00 p.m. on 29 December 2023. Please note that
the redemption request form is for use only in respect of ordinary shares held
in certificated form.

 

Holders of Ordinary Shares in uncertificated form (i.e. held in CREST) must
ensure that properly authenticated transfer to escrow (TTE) instructions are
received by Neville Registrars Limited by 3.00 p.m. on 29 December 2023.

 

Further details of the redemption facility can be found in the Company's
Circular dated 26 May 2020 (the "Circular") and at article 132 of the
Articles, copies of which are on the Company's website
www.indiacapitalgrowth.com (http://www.indiacapitalgrowth.com) . Terms defined
in the Circular have the same meaning in this announcement.

 

Expected Timetable

 

 Record Date                                                                    6.00 p.m. on 29 September 2023
 Redemption TTE input available (Ordinary Shares held in CREST)                 4 December 2023
 Latest time and date for reception of redemption request forms (Ordinary       3.00 p.m. on 29 December 2023
 Shares held in certificated form)
 Latest time and date for TTE (Ordinary Shares held in CREST)                   3.00 p.m. on 29 December 2023
 Announcement of number of Redemption Shares                                    2 January 2024
 Calculation and announcement of NAV per Ordinary Share as at 29 December 2023  5 January 2024
 Announcement of Redemption Price                                               8 January 2024
 Payment of Redemption Price                                                    w/c 15 January 2024

* The dates of the announcement and payment of the Redemption Price are
indicative only and subject to the level of redemption requests and prevailing
market conditions. The above timetable may be extended in the event that the
number of Redemption Shares is large, or, the market is unusually volatile and
any material changes to the timetable will be announced via a RIS in the event
of a change.

 

ENQUIRIES

 

 Ocean Dial Asset Management, Investment Manager                          +44 20 7068 9870
 Robin Sellers
 AssetCo                                                                  +44 7702 799 117

Gary Marshall, Lucy Draper
 Neville Registrars Limited, Receiving Agent                              +44 12 1585 1131
 Shore Capital, Financial Adviser and Broker                              +44 20 7408 4090

Robert Finlay, Rose Ramsden (Corporate Advisory)

Henry Willcocks, Fiona Conroy (Corporate Broking)
 Apex Fund and Corporate Services (Guernsey) Limited (Company Secretary)  +44 20 3530 3687

Matt Lihou                                                              matt.lihou@apexgroup.com (mailto:matt.lihou@apexgroup.com)

 

About India Capital Growth Fund

 

India Capital Growth Fund Limited the LSE premium listed investment company
registered and incorporated in Guernsey, was established to take advantage of
long-term investment opportunities in companies based in India. ICGF
predominantly invests in listed mid and small cap companies, although
investments may also be made in large cap and private Indian companies where
the Fund Manager believes long-term capital appreciation will be
achieved. www.indiacapitalgrowth.com
(https://url.avanan.click/v2/___http:/www.indiacapitalgrowth.com___.YXAxZTpzaG9yZWNhcDphOm86N2NkNDZjZWQ1NGY5NGEyYTZlZDY0MmFiZjZiNTJlMmM6Njo0NmUzOjAxMjNmMDIzZDBiYjExMWIyMjc0MDMxYzUyMzJmNzcxMGRmNWE5ZTU3NWRmNzU2YzJjMDljZmQzNzUwY2NjMGU6aDpU)

 

 

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