ICICI officials said the domestic issue had been oversubscribed to the tune of 1.75 times. "At a preliminary estimate, we have received applications worth about Rs 500 crore, Madhabi Puri Buch of ICICI said. The institution is allowed to retain 10 per cent oversubscription. In other words, it can retain Rs 302.50 crore against the issue size of Rs 275 crore.

The State Bank of India and Bank of Baroda together put in Rs 25 crore while Bank of India, Syndicate Bank and few private and foreign banks also chipped in with smalleramounts, sources handling the issue said. However, SBI's associate banks and its mutual fund did not put in any money, sources said.

Merchant banking sources said that corporates, funds (domestic and foreign) and a few financial institutions had put in money after the required response from the retail investor was found wanting. This was despite an offer from the institution that only Rs 20 need be paid on application. The rest of the Rs 73 issue price could be paid on March 31, 1999.

One reason for the tepid retail response could have been the closure of banks for a few days during the issue period. In Mumbai and some western parts of the country, the issue was effectively kept open only for three days. The issue opened on September 9 and closed on September 14. However, banks and markets in Mumbai and Chennai were closed on September 11, 12 and 13 for the second phase of elections and Ganesh Chaturthi.

The issue price is considered aggressive for the retail segment since the ICICI stock has beentrading only slightly above that price. On Tuesday, ICICI closed at Rs 80.10 on the Bombay stock exchange.

The financial institution also made a simultaneous preferential offer for Rs 500 crore to its three principal domestic institutional shareholders--Life Insurance Corporation, General Insurance Corporation and its subsidiaries and Unit Trust of India (UTI) at the same price of Rs 73. The three institutions hold close to 34 per cent in ICICI after the conversion of fully convertible debentures in July. The fresh offer helped the domestic institutions to retain their percentage stake in ICICI.