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India Capital Growth posts strong results ahead of first redemption vote

India Capital Growth - Discounted value

India Capital Growth posts strong results ahead of first redemption vote – India Capital Growth (IGC) has published its interim results for the six months to 30 June 2021, during which time its share price rose by 31.7% and its NAV increased by 25.1%, outperforming

The strong performance comes as India suffered from its deadliest coronavirus wave between March and May 2021,

Statement from the chair

‘Following the requisite amendment to IGC’s articles of incorporation to include a redemption facility, as approved at an extraordinary general meeting in 2020, the first redemption point will be 3pm on 31 December 2021. Shareholders may request redemption of part or all of their shareholding at an exit discount of 6% to NAV as at that redemption point. 

‘Clearly there is an element of uncertainty as to the level of uptake of the redemption facility and there is the possibility that significant redemption requests may impair the future viability of the company. 

‘Ocean Dial has agreed that if, at any redemption point, IGC receives valid redemption requests in respect of ordinary shares comprising in aggregate more than 50% of the then issued share capital of the company, the company shall be entitled to terminate the investment management agreement with Ocean Dial by not less than six months’ written notice.  This is a reduction from the 12 months’ written notice that would otherwise apply.

‘Ocean Dial has also agreed that, if at any time, a resolution is put to shareholders that the company shall continue in existence and should that resolution not be carried (and conversely if a resolution that the company should not continue in existence be put to shareholders to vote at a general meeting at any time and such resolution be carried) IGC shall be entitled to terminate the IMA by not less than six months’ written notice.’

IGC : India Capital Growth posts strong results ahead of first redemption vote

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