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US-based Janus Funds picks up 5.64% in Reliance Industries for Rs 20 billion

Reliance Industries Limited, or RIL, today informed the stock exchanges that Janus Funds, a leading US-based foreign institutional investor, or FII, has acquired 59.4 million shares of RIL.

Based on RIL's average share price of around Rs 325 in this period, the value of the investment works out to approximately Rs 20 billion ($ 500 million).

This represents the largest investment ever made by an FII in the equity of any single Indian company, through either the primary or secondary market route, says a media statement by the company.

The investment works out to 5.64 per cent of RIL's equity capital of Rs 10.53 billion ($ 240 million).

This disclosure has been made as required under Regulation 7(3) of the Securities & Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

According to market sources, the shares have been acquired from the secondary markets, over the past three weeks.

This also represents more than 30 per cent of the cumulative net FII investment of $ 1.5 billion into India, in the calendar year 2000.

The total investment by international investors in RIL now exceeds 23 per cent of its equity share capital. At the current market price, this represents a value of about Rs 100 billion ($ 2.2 billion).

Janus is among the largest value-based and long-term investors in the world, along with Capital International, Fidelity, and Templeton.

The huge investment in RIL shares by Janus also reflects the growing international appreciation of RIL's fundamental strengths and earnings growth prospects, say analysts.

The significant FII buying in RIL, following the announcement of a maximum stock buy-back price of Rs 303 per share, reflects the support of the international investing community for RIL's stock buy-back plan, the company said in the statement.

Janus, established in 1970, is one of the world's largest investment companies and currently has $ 350 billion in total assets under management, says the media statement.

It operates 39 US-based mutual funds, has 3 million retail and institutional investors, and employs over 2,200 people.

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