|India Cap S
||SUB SHS NPV
||EPS - Basic
||Market Cap (m)
India Cap S Share Discussion Threads
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|Sold some out at the 6p level which was plus 100% up but has dropped back to 50% up despite assets rising in IGC to 102p-still a nice profit in 6 weeks.
Am letting the rest ride until just before conversion in August hoping the they may go back up again by then.|
India Capital Growth Fund Ltd - Update research from QuotedData
8th July 2016
India Capital Growth's (IGC's) net asset value (NAV) is up 28.8% since QuotedData's last note was published on 23 March 2016 (its price is up 20.1%) yet, in recent weeks, its discount has widened to 20.4%. The managers cannot see any obvious reason why the discount should be widening.
India shines as a bright spot in a world beset by economic problems: GDP growth is running at 7.9%. The managers of IGC believe, that whilst a series of sometimes painful, but very necessary adjustments is ongoing, India's economy is now on a more stable footing and earnings growth, to date the missing ingredient in the bull case for Indian equities, is set to materialise. IGC, with its focus on small- and medium-sized stocks in India, is ideally placed to benefit. IGC is poised to expand its share capital by 50% as the August exercise date for its subscription shares approaches.|
|Well subs nearly up 100% and going strong,however the ordinary shares asset value is well up as well at 97.68p now.
The indian stockmarket is really shooting up and this has given the rise to the ordinaries and the subs.
When I started the thread (7 th June) the ordinary shares asset value was 83.65p it is now 97.68p-that's a 14.03p rise.
The ordinary shares and the subs have not risen the same ( ordinaries only 4.25p and the subs only 3p).
So their is still about whooping 11p difference between the increase in assets and increase in share price.
In my view should at some time be a very big jump in boththe ordinary shares and the subs to catch up. This could really take off in the next couple of weeks and the subs could double again. Lets see.|
|Shares now up nearly 100% since June 16,thats 2 weeks, however the Indian stockmarket has risen 10% in that time as well and these sub shares poised to go even higher. Have raised my target to 8p by mid August and maybe that is even to low.|
|Anyone else into these shares as they head north rapidly.|
|Ordinary shares moving up today along with the Indian Stock market which is going very strongly.
Rns out today regarding subscription date and price of 61p-(shares are currently 66.5p)
Asset value of ordinary shares is 93,4p , a discount of 32.4p,however if all subscription shares taken up asset value of ordinary would drop to 82.6p a discount of 23%.
However one must also bear in mind that it is quite possible that all the subscription shares may not be taken up in which case the asset value could be quite a bit higher.
Still 6 weeks to go until subscription date,not only are the subs a good bet if you want to buy the ordinary shares but I expect the subs to move strongly up before the date.
Still an excellent buy that could see a substantial gain.|
|At today's date 29 June-asset value has risen to 93.4p(that' up 12%) and fully diluted 81.77 so if all subscription shares are exercised the discount of the ordinary shares at today's date of 65p would be 16.77p or 25%
Both the ordinary shares and subscription shares are still way undervalued at present.
The subscription shares are being issued to enable the trust to invest more and make the trusts shares more widely available and tradeable which the trust considers would significantly reduce the discount to a more reasonable 5-10% discount at most.
This would equal a price of appx 73p for the ordinary shares.
Should the discount narrow to this or the asset value increase in the next few weeks this could give rise to an 8p rise in the ordinary share price.
Currently one should expect that for every 1p rise in the share price the subscription shares rise by 1p which if the ordinary did rise by 8p the subscription shares should rise by the same to 12.5p.
Currently the sub shares ,which are up 50% since I started the thread on 7 June are 4.5 p, however my view is that they could well be 100 % + higher by August.
Still a great buy.|
|The formula for calculating discount is:
NAV minus current offer price, then divide the resulting number by NAV and multiply by 100 to arrive at percentage discount.
83.63 - 62.5 = 21.13p
21.13/83.63 x 100 = 25.2%.
However, fully-diluted NAV per share is 76.08p, because the assumption has to be made that all subscription rights at 61p will be exercised, which reduces NAV per share. Allowing for that, the discount comes down to 17.68%.|
|POSSIBLE 100-200% GAIN IN A COUPLE OF MONTHS
These subscription shares carry the right to subscribe to shares in Indian Capital Growth at a price of 61p in August this year.
Currently Indian Capital Growth (IGC) Shares are 61.5 - 62.5
Their Net Asset Values per ordinary share as at 3 June 2016 was 83.63 pence
So at the moment as (ii) the share price is at a whooping 32% discount to assets
The subscription shares can be bought for 3 p at the moment.
The Indian market is on a rise and asset value of IGC could rise quite sharply with it, that coupled with a possible Brexit and the drop in sterling would mean a further rise. So for a 1p rise in IGC should see an equivalent rise in the subs (IGCS) .
So in a short time scale a 3p + rise in IGC is not out of the question-giving a possible 100%s rise in the subs (IGCS)|
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