* 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 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)