Business | Thu Dec 27, 2012 3:46pm IST

PC Jeweller shares end up 10.5 percent in debut

A customer looks in a mirror after wearing a gold earring inside a jewellery shop in Hyderabad September 8, 2009.
Reuters/Krishnendu Halder/Files
left
1 of 2
right
A woman tries on a gold bracelet at a jewellery showroom in November 4, 2009.
Reuters/Rupak De Chowdhuri/Files
left
2 of 2
right

MUMBAI (Reuters) - Shares of PC Jeweller rose as much as 14.6 percent in its stock market debut on Thursday after the company raised 6.1 billion rupees in an initial public offering as investors bet on strong demand for jewellery sales.

Shares in the retailer ended at 149.20 rupees on the NSE, up 10.5 percent from its IPO price of 135 rupees to institutional investors. The shares opened at 137 rupees and rose to as much as 154.70 rupees.

India's domestic jewellery industry is estimated at $45.3 billion and expected to grow to $60 billion in the next two years on the back of rising disposable incomes, according to a recent Aditya Birla Money note to clients.

Gold, a popular investment in India, could contribute 80 to 85 percent of the total of the domestic jewellery market, according to the brokerage.

PC Jeweller sells jewellery through 30 showrooms located across 23 cities in northern and central India.

The retailer, whose IPO was over-subscribed by nearly 7 times, is the second of three stock debuts this week.

Shares in Credit Analysis and Research Ltd (CARE) rose as much as 31.3 percent on Wednesday after raising $98 million in an IPO.

Bharti Infratel will make its debut on Friday after raising around $760 million in an IPO.

(Reporting by Manoj Dharra; Editing by Matt Driskill)

Top India News

Reuters Showcase

Auto Sector

Auto Sector

Ford aims to triple exports from India with $1 billion plant  Full Article 

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Insurance Sector

Insurance Sector

Australia's IAG to up stake in joint venture with SBI  Full Article 

Accenture Results

Accenture Results

Accenture raises revenue growth forecast for second time  Full Article 

GAIL's Plans

GAIL's Plans

GAIL seeking 7 LNG cargoes from Oct. 2015-Dec. 2016 - tender document.  Full Article 

Eyeing Pininfarina

Eyeing Pininfarina

Pininfarina confirms Mahindra interest, says no deal yet  Full Article 

SH Kelkar IPO

SH Kelkar IPO

SH Kelkar files prospectus for IPO, seen at around $100 mln  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage 

X