India Capital Growth : IGC – proposals

India Capital Growth has been thinking about its future and has decided to call an EGM where it will propose 1) that shareholders are issued with subscription shares and 2) that the dates of the company’s forthcoming continuation votes are changed.

The subscription shares would, if issued, be exercisable at asset value two years after being issued or, if the share price is 5% or more above the exercise price for a minimum of ten trading days, the company would have the right to bring forward the exercise date. The subscription shares would be issued on a 1 for 2 basis (one subscription share for every two ordinary shares owned) and be handed out free.

Currently India Capital Growth has a continuation vote scheduled for 2015. The company would prefer to shift that out until 2017 and then hold one every three years after that but only of the net asset value of the company was less that £30m or India Capital Growth had underperformed its benchmark by 5% or more over the three year period.

As far as discount control goes, the Board implies that if the company traded at a 20% discount or wider for three months it would have cause for concern and would consult shareholders about what to do.

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