Janus Capital garners 5.64 p.c. stake in RIL

By Our Special Correspondent

CHENNAI, APRIL 25. In the biggest ever single market operation yet, the U.S.-based investment company Janus Capital Corporation has picked up a 5.64 per cent shares in the Rs.1053-crore equity capital of Reliance Industries Ltd. (RIL).

Janus Capital has reportedly acquired 5.94 crore shares through market operations, spread over the last three weeks. Taking an average price of around Rs. 325, the value of Janus Capital's investment in the flagship company of the Ambanis should work out close to Rs. 2000 crores. The purchase is on behalf of its mutual funds and other institutions, it is stated.

This is, perhaps, the largest ever investment made in a single company - either through the primary market route or via secondary market operations - by any foreign institutional investor (FII).

Janus's investment in RIL also represents a little less than a third of the cumulative net FII inflow of $ 1.5 billion into India so far during the current calendar year.

Global investors hold over 23 per cent shares in RIL, a far cry from the zero FII investment way back in 1992. Out of the total FII investments, Janus alone now holds 5.64 per cent equity in RIL. At the prevailing share price, the marketcap of FII holding in RIL (23 per cent) is worth a whopping Rs. 10,000 crores.

Founded three decades ago, Janus is among the largest investment companies in the world. Janus and its affiliates offer products and services designed specifically for non-U.S. investors. Janus funds are offered by prospectus only.

Janus's buying into RIL shares comes close on the heels of the Ambanis announcing the biggest-ever share buy-back programme worth Rs. 1100 crores.

The RIL management has already reported the Janus's move to the stock exchanges across the country. This is done to conform to Section 7(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

Send this article to Friends by E-Mail

Section  : Business
Previous : Bullion rates
Next     : Sterlite decides 1:1 share ratio for demerger