India Capital Says Share Price Has Fallen Due To Virus Crisis

(Alliance News) - India Capital Growth Fund Ltd on Friday said its net asset value fell in 2019, ...

Alliance News 20 March, 2020 | 11:46AM
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(Alliance News) - India Capital Growth Fund Ltd on Friday said its net asset value fell in 2019, during what was a "difficult year for Indian equity markets".

At December 31, its net asset value per share was 13% lower year-on-year at 88.50 pence from 101.65p.

Shares in the company were 6.7% higher at 38.00p each in London on Friday morning.

"The NAV declined by 13% during the year, underperforming the company's benchmark, the BSE Midcap TR Index which fell 7%," India Capital said.

India Capital added that since the year end, its NAV has slumped 28%, with its share price losing 50%. The company attributed this to the "unprecedented falls on global markets" due to the Covid-19 outbreak.

The Indian rupee has also weakened, the company added, due to the recent fall in oil prices.

Chair Elisabeth Scott said: "The global economy is grappling with a worldwide pandemic, an oil price war, and unprecedented extreme volatility in capital markets. The situation is rapidly evolving on a daily basis and as such taking a view as to the likely near term impact on the Indian economy is a challenging task. The Mumbai-based investment management team is in regular touch with the companies in which your company is invested, monitoring corporate developments closely. They are hopeful that, when concerns about Covid-19 are allayed, Indian equities will be able to recover and that businesses will return to growth."

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
India Capital Growth Ord 55.00 GBX -0.72

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