India Capital Growth’s (IGC’s) board is asking investors to back a continuation vote scheduled for 12 June 2020 and it is important that shareholders make their vote count. COVID-19 has depressed valuations to levels not seen since the financial crisis. The managers see substantial upside when market confidence returns and are asking for more time to deliver that. The board believes shareholders should support the continuation of the company. This reflects their confidence in the measures taken to turn performance around, which we discuss in this note. When small and mid-cap valuations return to trading at long-term average valuations, IGC’s share price could improve meaningfully… Read more
India’s response to the COVID-19 outbreak has been robust and this will have serious economic consequences. This has triggered a further leg down in the Indian market. A stimulus package of up to $266bn announced on 12 May should help stimulate a long-awaited recovery.
In a response to the reversal of fortune that IGC has experienced over the last couple of years, the adviser has strengthened its team and refined its investment approach. Shareholders that give IGC the benefit of the doubt will have the comfort of a full exit opportunity in December 2021.
Mid- and small-cap listed investments in India
IGC’s investment objective is to provide long-term capital appreciation by investing (directly or indirectly) in companies based in India. The investment policy permits the company to make investments in a range of Indian equity securities and Indian equity-linked securities. The company’s investments are predominantly in listed mid- and small-cap companies.
NB: Marten & Co was paid to produce this note on India Capital Growth Fund Limited and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is
authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
