This decision follows the company's strategy to park its investible funds in high-growth sectors such as infotech and pharma. Following the upsurge in these segments, the institution is hoping to either fund or participate in the equity of the companies operating in these sectors.

Though no reaction has come from any of two Chennai-based firms, the institution is confident that the deals would come through.

However, the deals with the infotech firms are expected to be tougher. For, following the bull-run of IT stocks in the market, the prices quoted by these firms are expected to be well above than what the institution is willing to offer. So, ICICI hopes to make only slow progress with them and strike a deal only at a `right' price.

Shifting its focus on to the emerging retail outlets, ICICI has decided to extendassistance for small/mid cap companies engaged in the business through its recently constituted Growth Client Group (GCG).

The company has already identified about 15 of them in the southern region and plans to provide funds to improve their businesses.

Further, as a part of its own retail strategy, ICICI has decided to set up and expand its retail servicing units, ICICI Centres, to improve the asset products handled by its new Personal Financial Services group. The group takes care of auto loans, home loans and consumer durable loans through a few dealers appointed by it.

To fund the expansion plan and to improve its business, the institution is coming out with an equity issue offering 3,77,00,000 shares of Rs 10 each for cash at a premium of Rs 63 per share aggregating Rs 275.21 crore with a right to retain oversubscription up to 10 per cent. The issue opens for subscription on September 9, 1999 and closes on September 14, 1999.