The 12.5 per cent FCDs with an aggregate value of Rs 51.7 crore have been converted into 3.45 crore equity shares. These shares will now find their way into the market as they are permitted for trading on the BSE with effect from today. Since the conversion last month, the ICICI scrip has slipped from a high of Rs 98 to the current price of Rs 72.85. Even at the current market price, the conversion price is at a steep discount of 79 per cent.

Last year, ICICI had indicated a maximumconversion price of Rs 60. This would have resulted in a lower equity dilution of 7.5 shares per debenture. At Rs 15 a share, the Rs 450 FCD stands converted into 30 shares. Incidentally, the 1996-97 annual report had not indicated any range for the premium for the conversion.

The conversion at a lower price would bring down the average cost for the institutional promoters who had expressed opposition to the Rs 2165-crore capital float initially. However, the ICICI board on Thursday approved the mega capital float under which it will make a preferential offer of equity shares to the promoter institutions at Rs 73 per share aggregating Rs 500 crore or 6.8 crore shares. The total additional shares the promoters will get (assuming they subscribe to the preferential offer) will be 10.29 crore shares. The average price for these two lots together will be a little over Rs 52.

ICICI will also make a public float at Rs 73 for an aggregate amount of Rs 275 crore. Besides, it will make a $ 320 million ADR issue.