Kubera struggling to realise assets

The value of Kubera Cross Border Fund’s net assets decreased from $56.9m to $54.8m during the six month period, which ended on 30 June 2015. The Fund’s net asset value per share decreased by 3.8% from $0.52 to $0.50. The company reckons the decrease in NAV is primarily attributable to the depreciation of Indian Rupee vis-à-vis the US Dollar (which is the denomination of the Fund) and a decrease in public equity market valuations, which are taken into account in establishing the value of equity interests in the Fund’s portfolio which are publicly traded securities. this seems to have taken about $1.2m off the value of Synergies Castings and $0.3m off the value of their smaller investments – the values of NeoPath and Essel Shayam seem not to have changed much.

Kubera’s share price fell 14% from $0.257 to $0.22 as at 30 June 2015 (though the announcement says the price was “fairly constant”) and that meant the discount widened from 50% to 56%.

The manager says that while sentiment in India remains bullish, and the Fund’s two major holdings are performing well operationally, meaningful monetization has not yet occurred, and the path to liquidity for private investments in India remains challenged. They say they are deeply engaged in exploring all liquidity options.

KUBV : Kubera struggling to realise assets