HDFC Asset Management Co Ltd`s initial public offering (IPO) to raise 28 billion rupees ($407.7 million) was subscribed 83 times, underscoring the strong growth potential in the Indian mutual fund sector that has seen assets doubling in three years.

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HDFC AMC, the second-biggest mutual fund manager in the country with 3.07 trillion rupees worth of assets under management in the June quarter and its peers in the 23.57 trillion rupee sector have benefited from Indians moving away from traditional investments such as gold and real estate.

A surprise scrapping of high-value bank notes in November 2016 and strong equity markets helped fund managers further, with assets under management scaling a string of record highs.

Analysts say HDFC AMC, which is the most profitable asset manager in the country, also stands out among its peers with its higher share of equity assets and focus on the retail segment.

Investors bid for 1.56 billion shares, or 82.98 times the 18.8 million shares on offer, data as of 1300 GMT showed.

Anchor investors previously agreed to buy 6.7 million shares worth 7.32 billion rupees as part of the IPO.

The fund house`s two biggest shareholders - mortgage lender Housing Development Finance Corp Ltd and Standard Life Aberdeen Plc are selling a 12 percent stake in the IPO.

Last year, HDFC AMC`s smaller rival Reliance Nippon Life Asset Management Ltd raised 15.42 billion rupees in an IPO that had also seen strong interest from investors.

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Kotak Investment Banking, Axis Capital, Bank of America Merrill Lynch, Citigroup, CLSA, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JPMorgan, Morgan Stanley and Nomura were the banks managing the HDFC AMC IPO.