REG - India CapitalGrwthFd - 2025 Redemption Facility Details

India Capital Growth FundAnnouncement

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RNS Number : 0692Q  India Capital Growth Fund Limited  08 July 2025

8 July 2025

 

India Capital Growth Fund Limited

("ICGF" or the "Company")

LEI: 213800TPOS9AM7INH846

2025 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.

 

Background

 

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 (the "Redemption Point").  This announcement confirms the arrangements
for the third Redemption Point on 28 November 2025, which will enable
Shareholders of Ordinary Shares held at 6.00 p.m. on 29 August 2025 (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").

 

Discount Management

 

Since the last redemption opportunity in late 2023, the Company has employed
an active discount management strategy through the regular buy-back of
Ordinary Shares via its broker, Shore Capital.

 

In early 2024, the Company's Ordinary Shares did trade at a premium to NAV,
resulting in 5.83 million Ordinary Shares being issued from Treasury at a
premium to NAV. However, macro challenges have weighed on the Company's share
price since then, leading to the Ordinary Shares trading at a discount to NAV.

 

To proactively ensure that the discount level is contained, some 1.61 million
Ordinary Shares were bought back by the Company since March 2024. In 2025 to
date, 395,000 Ordinary shares have been repurchased through Shore Capital. As
a result of these efforts, the average discount year-to-date has been 8.73%
and in 2024 it was 7.48%.

 

Performance and Outlook

 

Over the past 12 months, India Capital Growth Fund returned -4.8%, reflecting
a period of consolidation following a strong phase of growth. Performance was
notably impacted by currency movements, particularly the sharp appreciation of
the British Pound (GBP) against the Indian Rupee (INR).

 

Despite recent global headwinds, India Capital Growth Fund's long-term
performance remains strong. The fund has achieved a robust Net Asset Value
(NAV) growth of 64.9% over 3 years and an impressive 169.2% over 5
years, underscoring its ability to deliver sustained value over time.

 

Looking ahead, India is poised to be the fastest growing large economy
globally. The India Capital Growth Fund is well-positioned to benefit from
this momentum through its focused portfolio of 37 high-quality stocks,
strategically aligned with multiple emerging themes across the Indian market.

 

The Board continues to work with River Global and Shore Capital on marketing
initiatives in order to ensure that the Company's share rating is reflective
of its strong record of performance.

 

The Board thanks Shareholders for their continued support for the Company.

 

Arrangements for 28 November 2025 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 28
November 2025 Redemption Point for all or any of their holding of Ordinary
Shares held at 6.00 p.m. on 29 August 2023 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
("Redemption Price"). 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 will be available in early November 2025
from the Company's website: www.indiacapitalgrowth.com
(https://url.avanan.click/v2/___http:/www.indiacapitalgrowth.com___.YXAxZTpzaG9yZWNhcDphOm86MTU3N2U1NGMwZmE0Y2U3NDg0ZDQ4ZWZhMmQ4ZWM3Yzg6NjphYTNhOjQ5ZWFlYjQzN2VhMjZiZmQ1OTEwMjI2MmZiMWQ3NzU3NmY1ZTIxNDM1MmM0NzZmNDRjYjgzOTI0ZDFiYmRjNjc6cDpGOk4)
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 28 November 2025. 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 28 November 2025.

 

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
(https://url.avanan.click/v2/___http:/www.indiacapitalgrowth.com___.YXAxZTpzaG9yZWNhcDphOm86MTU3N2U1NGMwZmE0Y2U3NDg0ZDQ4ZWZhMmQ4ZWM3Yzg6NjphYTNhOjQ5ZWFlYjQzN2VhMjZiZmQ1OTEwMjI2MmZiMWQ3NzU3NmY1ZTIxNDM1MmM0NzZmNDRjYjgzOTI0ZDFiYmRjNjc6cDpGOk4)
. A further reminder announcement of the procedures for submitting Redemption
Requests will be made in early November 2025.

 

Terms defined in the Circular have the same meaning in this announcement.

 

Expected Timetable (all dates are in 2025)

 

 Record Date                                                                    6.00 p.m. on 29 August
 Redemption TTE input available (Ordinary Shares held in CREST)                 3 November
 Latest time and date for receipt of redemption request forms (Ordinary Shares  3.00 p.m. on 28 November
 held in certificated form)
 Latest time and date for Transfer To Escrow (Ordinary Shares held in CREST)    3.00 p.m. on 28 November
 Announcement of number of Redemption Shares                                    1 December
 Calculation and announcement of NAV per Ordinary Share as at 29 November 2025  4 December
 Announcement of Redemption Price                                               8 December
 Payment of Redemption Price                                                    w/c 15 December

* 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

 

 River Global, AIFM and Investment Manager                                +44 7702 799 117

Lucy Draper, Robin Sellers
 Neville Registrars Limited, Registrar and Receiving Agent                +44 121 585 1131
 Shore Capital, Financial Adviser and Broker                              +44 20 7408 4050

Gillian Martin, Daphne Zhang (Corporate Advisory)

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

Matt Lihou                                                              indiacapitalbox@apexgroup.com (mailto:indiacapitalbox@apexgroup.com)

 

About India Capital Growth Fund

 

India Capital Growth Fund Limited the London Stock Exchange's Main market
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
(http://www.indiacapitalgrowth.com)

 

 

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