HDFC Asset Management Company's (AMC) initial public offering (IPO) that took off on Wednesday received a positive response from investors within hours of the issue. At 2:30 pm, the data on NSE (National Stock Exchange) showed that the Rs 2,800 crore issue was subscribed 0.53 times with a total of 99,96,779 bids received on the issue size of 1,88,04,290 shares.

A little after 4:30 pm, the data showed over 1.9 crore bids, indicating a 100 percent subscription.

HDFC AMC had raised Rs 732 crore from anchor investors on Tuesday by allotting 66.53 lakh shares at the price of Rs 1,100 per share. Anchor investors include Capital, Fidelity, Temasek and Blackrock.

At the price band of Rs 1,095-1,100, brokerage Motilal Oswal Securities said, "At the upper price band, HDFC AMC is valued at 32 times FY18 EPS (20% premium to its only listed peer Reliance Nippon AMC), which is justified given the strong parentage, consistent market leadership, and superior growth." Reliance Nippon AMC is currently trading at a discount rate to its issue price.

Along with Motilal Oswal Securities, Angel Broking has given HDFC AMC IPO a "subscribe" rating. Angel Broking cites the company's "superior investment performance' as the reason for its recommendation.

Through the IPO, the partners HDFC and Standard Life are looking to sell 12.01 percent stake in the AMC collectively.