The initial public offer (IPO) of Computer Age Management Services (CAMS) got fully subscribed on the second day of the bidding process.

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The Rs 2,244-crore public issue received bids for 1.38 crore equity shares against the offer size of 1.28 crore equity shares.

The portion reserved for retail investors has been subscribed 1.7 times, while the reserved category of non-institutional investors segment received 32.3 percent subscription. The qualified institutional investors' portion has been subscribed 24.76 percent while that reserved for its employees has been subscribed 25.72 percent, as per the data available on the exchanges.

The IPO is available for subscription till September 23. The price band has been fixed price band of Rs 1,229-1,230 per share.

The IPO of the Chennai based financial infrastructure company consists of an offer for sale of 1,82,46,600 equity shares by NSE Investments, a subsidiary of the National Stock Exchange, Great Terrain Investment, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers filed with Sebi.

CAMS has already raised Rs 667 crore via anchor investors on September 18.

Read here: CAMS IPO issue opens with a price band of Rs 1,229-1,230/share: Should you subscribe?

The brokerages are bullish on the company given its unique business and low valuations.

IIFL Securities assigned a 'subscribe' call to the IPO by saying that the opportunity landscape of mutual fund business in India is huge. It further added, "At Rs 1,230 per share (IPO price), CAMS is priced at 35x FY20 EPS, at a 10-15 percent discount to listed AMCs, Exchanges and Depositories. We expect the stock to trade in-line with other comparables and further re-rate."

The company earns a healthy RoE of over 35 percent, has zero debt, has a dividend payout policy of at least 65 percent and generates robust free cash every year. The valuations are reasonable at FY22E P/E of 26x, said Yes Securities in its report with 'subscribe' rating.

Motilal Oswal also recommended a 'subscribe' to the issue in view of its asset-light model business and high entry barriers. The issue is fairly valued in, and we like its integrated business model, leadership position, strong financials and pan-India presence, the brokerage said.

The company was incorporated by Great Terrain Investment which is the affiliate of US-based private equity firm, Warburg Pincus. It is the largest registrar and transfer agent of mutual funds in India with a market share of approximately 70 percent based on the mutual fund average assets under management (AAUM) managed by its clients and serviced by them during July 2020.