The Rs 275.21 crore public issue is part of ICICI's exercise to mobilise Rs 2165 crore. Of the total float, shares aggregating Rs 500 crore will be allotted to domestic financial institutions at a price of Rs 73 per share. The balance will be raised through an international float.

The public issue of about 3.77 crore shares will be lead managed by JM Morgan Stanley and DSP Merrill Lynch.

In anticipation of the mega float from the institution, ICICI's share prices have been on the slide on the stock markets. On Monday, ICICI's shares stabilised around Rs 73.40 at the end of the day's trading after touching a high of Rs 75.45.

ICICI proposes to retainoversubscription to the extent of 10 per cent. The issue is not underwritten, while the institution does not face the fear of refunds on undersubscription as it is exempt from the minimum subscription norm.

The shareholding of domestic financial institutions, according to the draft prospectus, was 34.29 per cent as on August 6, 1999. This will go down to 31.95 per cent after the Rs 275-crore public issue. However, the shareholding pattern does not reflect the proposed preferential allotment and the international float.

The net proceeds from the issue will help ICICI strengthen the capital adequacy ``in line with the benchmarks of leading, well-capitalised international financial institutions.'' Besides, the capital mobilised will help ICICI sustain its growth.

ICICI's return on networth was 20.4 per cent as on March 31, 1999. To maintain the pre-issue earning per share of Rs 18.2, the institution will require a return on networth of 21 per cent. ICICI is one of the leading financial services company inIndia with assets worth Rs 58,710 crore. The institution has over 1000 corporate clients and a growing base of over two million retail customers and investors.