1 October 2021

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 4,239,763 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 period of approximately three years from the Company's IPO on 6 July 2018 to 30 June 2021 (the "Performance Fee Issue").

As detailed in the Company's prospectuses published in June 2018 in connection with its IPO and in May 2021 in connection with the Company's share issuance programme and the Performance Fee Issue (the "2021 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 2021, the Investment Manager has delivered significant outperformance in the 3 year period since IPO, delivering returns of 62.1% over the period, 27.9% above the benchmark index, and the resulting Performance Fee for the period is £7,992,803. 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 4,239,763 New Ordinary Shares will be issued at the prevailing net asset value as at 30 September 2021 of 188.52 pence per Ordinary Share.

As detailed in the 2021 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 2021 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 premium segment of the Official List of the Financial Conduct Authority and to trading on the premium segment of the London Stock Exchange plc's main market ("Admission"). It is expected that Admission will occur at 8.00 a.m. on 7 October 2021.

Following Admission, the Company's issued share capital will comprise 89,217,393 ordinary shares of one penny each and 50,000 management shares of £1.00 each.  The total number of ordinary shares with voting rights in the Company is 89,217,393. This figure (89,217,393) 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:

Jennifer Thompson                                                                              020 4513 9260

PraxisIFM Fund Services (UK) Limited

Company Secretary