The Ashoka India Equity Investment Trust is looking for shareholder approval to issue up to 150 million shares through a new issuance programme, and to change its investment policy to remove the top cap on number of investments.
The shares would be offered on a ‘non-pre-emptive basis’, with existing shareholders waiving their right to be offered shares first based on what they hold. If Ashoka were to issue 150 million new shares, it would more than double its current number in issuance of 140 million, according to AIC data.
Ashoka will hold a general meeting on 3 May for shareholders to vote on the issuance programme and said it would share a prospectus with details about the programme ‘shortly’.
The investment policy would be adjusted by removing the current cap of 100 investments in the portfolio to an unlimited number, but keep the minimum number of 50 investments.
Currently, the policy reads: “It is expected that the company’s portfolio will comprise approximately 50 to 100 investments although, in order to allow the investment manager and investment adviser flexibility to take advantage of opportunities as they arise, the portfolio may occasionally comprise holdings outside of this range.”
According to Kepler Trust Intelligence, the Ashoka India Equity trust had raised £31.6m this year to the end of March, bringing total assets to £340m. The trust currently trades at a 7% premium, according to AIC data.
