ICICI, which had obtained shareholders' nod for raising equity capital aggregating Rs 2,165 crore, or $ 500 million equivalent at the annual general meeting on July 30, has proposed a Rs 500 crore preferential allotment of equity capital to the institutional shareholders and a Rs 275 crore public issue at a price of Rs 73 per share.

The domestic issues would be followed by an international offering to raise another Rs 1,390 crore, the third foreign overseas offering after a convertible issue in 1994 and a global depository receipt (GDR) issue in 1996. The pricing would be determined on the basis of the book building process, ICICI said in a statement.

ICICI has kept an option to retain oversubscription upto 10 per cent tothe proposed public issue. As per the final structure for equity issuance adopted by the board, Life Insurance Corporation (LIC), General Insurance Corporation (GIC) and its four subsidiaries and Unit Trust of India (UTI) could avail of the preferential allotment.

After the preferential and domestic public issues, ICICI's paid-up equity capital will go up by Rs 110 crore to Rs 624.5 crore. The insurance companies as on March 31, 1999 together held 23.3 per cent of ICICI's equity and UTI 5.8 per cent and the preferential allotment would help them maintain their shareholding in the financial institution at the present levels after fresh issuances.

Global depository receipt (GDR) holders account for 20 per cent of ICICI's equity, while foreign institutional investors and non-resident Indians together hold 14.8 per cent.

Analysts said that ICICI will have a difficult time in raising money through the retail issue, especially at a time when the outlook for banking sector stocks is not too good. ``Softwarestocks might be doing well as the sector is on an upswing but the outlook for banking sector stocks is bearish,'' said an analyst. The stock was trading at Rs 72 in the Bombay Stock Exchange.

The FI is yet to appoint merchant bankers for the retail issue apart from the lead manager JM Morgan Stanley. Sources in ICICI said that as the FI had submitted an umbrella prospectus for the bond issue with the Sebi, it will not take a long time for security watchdog to clear the issue. "Tentatively we are planning it in the next two to three weeks," a senior official in ICICI said.

The term lending institution had earlier decided to go for a New York Stock Exchange (NYSE) listing in the next six months. After the ADR float, ICICI will be the first Indian financial institution -- and fourth in the world -- to be listed on the NYSE.