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Last checked at 
22 Oct 2024 14:22
22 October 2024
LEI: 213800KX5ZS1NGAR2J89
Ashoka India Equity Investment Trust plc
(the "Company")
Issue of Ordinary Shares
Ashoka India Equity Trust plc (the "Company") announces that it will issue 807,246 new ordinary shares of one penny each (the "New Ordinary Shares") to Acorn Asset Management Ltd (the "Investment Manager"), in relation to the performance fee which has become due in respect of the three-year period from 1 July 2021 to 30 June 2024, being the second performance fee payable by the Company.
As detailed in the Company's prospectuses published in June 2018 in connection with its IPO and in April 2024 in connection with the Company's share issuance programme and the Performance Fee Issue (the "2024 Prospectus"), the Investment Manager does not receive a fixed management fee from the Company. Instead, the Investment Manager is entitled to receive a performance fee subject to meeting the relevant performance criteria (the "Performance Fee"). The Performance Fee, which is measured over consecutive, discrete performance periods of three years, is designed to reward investment outperformance by the Investment Manager, through delivering excess returns versus the benchmark index to the Company's shareholders over the medium-term.
As set out in the Company's audited annual accounts for the year to 30 June 2024, the Investment Manager has delivered outperformance in the three-year period since 30 June 2021 (being the reporting period end applicable to the last performance fee due), delivering returns of 75.8% over the period, 10.8% above the benchmark index, and the resulting Performance Fee for the period is £2,300,571. The Performance Fee is payable to the Investment Manager in the form of new ordinary shares in the Company at the prevailing net asset value at the time of issue. Accordingly, 807,246 New Ordinary Shares will be issued at the prevailing net asset value as at 21 October 2024 of 284.99 pence per Ordinary Share.
As detailed in the 2024 Prospectus, the Investment Manager has agreed that at least 50% of any Ordinary Shares acquired by it through the Performance Fee will, save in certain circumstances, be locked in for a period of three years.
Further details of the Performance Fee are set out in the 2024 Prospectus, which is available to view on the Company's website https://ashokaindiaequity.com/.
Applications have been made for admission of the New Ordinary Shares to the closed-ended investment funds category of the Official List of the Financial Conduct Authority and to trading on the Main Market of the London Stock Exchange ("Admission"). It is expected that Admission will occur at 8.00 a.m. on 25 October 2024.
Following Admission, the Company's issued ordinary share capital will comprise 162,039,643 ordinary shares of one penny each. The total number of ordinary shares with voting rights in the Company is 162,039,643. This figure (162,039,643) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
For further information please contact:
Apex Listed Companies Services (UK) Limited 020 4582 6470
Company Secretary
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