UPDATE 1-India's PC Jeweller shares gain in debut after $111 mln IPO

Thu Dec 27, 2012 2:44pm IST

Related Topics

Stocks

   

* PC Jeweller rises to as much as 154.50 rupees

* IPO was priced at 135 rupees to fund investors

* Outlook for jewellery sales seen strong (Updates with details, background, analyst quote)

MUMBAI, Dec 27 (Reuters) - Shares of India's PC Jeweller Ltd rose as much as 14.6 percent in its stock market debut on Thursday after the company raised 6.1 billion rupees ($111.20 million) in an initial public offering as investors bet on strong demand for jewellery sales.

Shares in the retailer were trading at 153.65 rupees as of 0905 GMT, up 13.8 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.

($1 = 54.8550 Indian rupees) (Reporting by Manoj Dharra; Editing by Matt Driskill)

FILED UNDER:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

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