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PC Jeweller shares gain in debut after $111 mln IPO

Source : REUTERS
Last Updated: Thu, Dec 27, 2012 09:25 hrs
A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh

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.

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