@Jiggysaurus: I have a different opinion...
(i) For investment trusts, NAV is a better basis of valuation than dividend yield. In the present context, I think a 25% discount would be appropriate.
(ii) A rights issue is a legitimate way for a company to fund its growth plans; there is nothing shameful or beggarly about it. It provides existing shareholders the opportunity to buy additional shares, generally at a discount to market.
1)Totally agreed investment trusts should be valued on NAV (with an appropriate small discount), but in this case CIT is not a full scale investment trust like GUAR. Part of it (the part that owns the cross holdings in other Rajaratnam group companies) will never be brought/sold/traded, so this part should be excluded and valued separately on a dividend yield. The regular shareholdings (in non group companies) can be valued on NAV.
2)A rights issue is beggarly when done by the Rajaratnam group, just add up the number of rights done over the last 5 years (I think you'll get close to 15 issues). When a rights is done by someone like JKH then it is as you say.