REG - India CapitalGrwthFd - 2025 Redemption Facility Details

India Capital Growth FundAnnouncement

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RNS Number : 7475F  India Capital Growth Fund Limited  03 November 2025

3 November 2025

 

India Capital Growth Fund Limited

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

LEI: 213800TPOS9AM7INH846

2025 Redemption Facility Details

 

Further to the announcement made on 8 July 2025 regarding the Company's 2025
Redemption Facility, this announcement further explains 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. to Net Asset Value per Ordinary Share (NAV),
(the "Exit Discount").

 

For the avoidance of doubt, unless Shareholders wish to redeem their Ordinary
Shares under the Company's 2025 Redemption Facility, they do not need to take
any action. The Board will retain their Ordinary Shares and recommends that
all Shareholders do the same. If Shareholders are in any doubt about the
action they should take, they should 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.

 

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 their
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 the discount level is contained, in 2024 the Company
bought back into Treasury at a discount to NAV some 1.61 million Ordinary
Shares at an aggregate cost of £2.84 million. In 2025 to date, the Company
has bought back into Treasury a further 0.94 million Ordinary Shares at an
aggregate cost of £1.58 million. As a result of this strategy, the average
month end discount in 2025 year-to-date is 7.50% and in 2024 it was 7.48%.

 

Performance and Outlook

 

Over the past 12 months to 30 September 2025, the NAV of India Capital Growth
Fund has outperformed its notional benchmark, the BSE Midcap Total Return
Index, by 1.1% despite falling by 12.0% in absolute terms.  This reflects a
period of consolidation in the Indian equity markets and the expected impact
of tariffs on the global economy. Performance was affected by currency
movements, in particular the sharp appreciation of the British Pound (GBP)
against the Indian Rupee (INR).

 

Despite the recent lacklustre performance of Indian equity markets, India
Capital Growth Fund's long-term performance remains strong. The Company has
achieved a robust Net Asset Value (NAV) growth of 26.1% over 3 years and an
impressive 108.7% 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. India Capital Growth Fund is well-positioned to benefit from this
momentum through its focused portfolio of 35 to 40 high-quality stocks,
strategically aligned with multiple emerging themes across Indian markets.

The Board continues to work with River Global and Shore Capital on marketing
initiatives 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 2025 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).

 

The redemption request form is available from the Company's website:
www.indiacapitalgrowth.com (https://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).

 

A duly completed redemption request form 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://www.indiacapitalgrowth.com) . 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 28 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 Group, 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, 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 Investment Manager believes long-term capital appreciation
will be achieved. www.indiacapitalgrowth.com
(https://www.indiacapitalgrowth.com)

 

 

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