The fall in FIs' stake in the institution is mainly due to the reduction in the holding of General Insurance Corporation and its subsidiaries by 2.37 per cent. GIC and its subsidiaries held 11.19 per cent of ICICI's equity as on July 6, 1998, which came down to 8.82 per cent as on August 12, 1998. As a result, the total holding of FIs in ICICI came down from 34.5 per cent to 31.96 per cent during the same period.

The holding pattern of ICICI has undergone a substantial change over the last one year. Financial institutions including LIC, GIC and its subsidiaries and the Unit Trust of India together held 43.65 per cent of ICICI's equity as on March 5, 1997. These institutions alongwith IDBI and the State Bank of India hold only 31.96 per cent of the equity now (as on August 12, 1998). The fall in the FI holding over the last one month could be due to short-term profit-booking by some of these institutions. ICICI had reached a high of Rs 122 in mid-April, falling to a low of Rs 64 on June 23.

It is currently trading around Rs 72. The holding pattern could also have changed due to the merger of SCICI (April, 1996) which led to an increase in the equity capital. Nearly 20 per cent of the holding is accounted for by global depository receipts. Besides, Templeton Investment Counsel and Templeton Developing Market Trust hold 1.42 and 1.39 per cent, respectively.

Besides, the impact of merger on equity expansion, conversions will also boost ICICI's paid-up capital. One year down the line (by July, 1999) the conversion of 12.5 per cent fully convertible debentures will result in an increase of the paid up capital by Rs 34.53 crore. This will take the total capital to over Rs 510 crore. As a result, FI holding will increase by two to three per cent, provided they do not dilute their holdings further in the next few months.