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
