(Alliance News) - Ashoka India Equity Investment Trust PLC on Monday reported a growth in net asset value in the six months to December 31, touting India's recovering export growth and domestic demand in the country.
The London-based India-focused investment trust said NAV per share at December 31 climbed 10% to 191.6 pence from 174.2p at June 30. NAV total return was 10%, mildly outperforming the MSCI India IMI Index, which had a total return of 9.9%.
Looking ahead, the company posted a positive outlook in regard to India, noting "strong domestic demand" and a "shift of manufacturing from China to India" which it said is faster than anticipated, with the shift expected to accelerate.
Chair Andrew Watkins added that India is adopting green initiatives that the company expects to create "a large number of jobs" and to reduce reliance on imported oil.
Regarding dividends, Ashoka explained: "The company's objective is to provide shareholder returns through capital growth, with income being a secondary consideration. Therefore, it is unlikely that the company will pay a dividend under normal circumstances."
Ashoka India Equity shares were 0.2% higher at 189.43 pence each in London on Monday afternoon.
By Tom Budszus, Alliance News reporter
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Ashoka India Equity Investment Trust Plc (AIE)