Jio Platforms IPO: the questions to answer before you apply

Think about the last time your phone showed "No service". You probably felt a little lost, and then it came back and you forgot about it. That quiet reliability is a business with hundreds of millions of customers, and it is heading to the stock market.

Whether you have never applied for an IPO or you track grey market premiums for fun, here are the questions worth answering first.

What is Jio Platforms, exactly?

Jio Platforms is the Reliance group company that holds the Jio mobile network, JioFiber and AirFiber broadband, and the apps and cloud services that sit on top of them. Jio launched commercially in 2016 with very cheap data, and in 2020 Meta and Google bought minority stakes.

Latest status, dates and price band: {{72IPO: IPO status, open and close dates, price band}} (72IPO page)

Isn't Jio already listed?

Partly, and this is where most beginners get confused. Reliance Industries is listed and owns most of Jio Platforms, so you already hold a slice of Jio if you own Reliance. Jio Financial Services is also listed, but it is the lending and payments business that Reliance demerged in 2023. It is a separate company from the telecom arm.

So this IPO would be the first time you can buy the telecom and digital business directly.

How big is the market Jio plays in?

India has over a billion mobile connections. Jio and Airtel carry most of them, with Vodafone Idea and state-run BSNL sharing the rest. A market this large sounds like a gift, but it also means most new customers have already picked a network.

Industry size and subscriber share: {{72IPO: market size and share}} (source)

How is Jio actually performing?

Look at the numbers over three years, not one.

• Revenue: {{72IPO: revenue FY23, FY24, FY25}} (link)
• EBITDA and margin: {{72IPO: EBITDA and margin}} (link)
• Net profit: {{72IPO: PAT}} (link)
• Subscribers and ARPU: {{72IPO: subscribers, ARPU}} (link)

ARPU is the average amount a customer pays each month, and it is the number to watch. When a company already has most of the customers it can get, growth has to come from each customer paying a bit more. Jio raised mobile tariffs in July 2024, so check how much of the recent growth in the table above comes from that.

What is this IPO actually selling?

Some IPOs raise fresh money for the company. Others are an offer for sale, where existing shareholders sell and the company receives nothing. Many mix both.

Fresh issue versus offer for sale, and the planned use of money: {{72IPO: issue structure, object of the issue}} (link)

If most of the issue is an offer for sale, ask what the sellers know that you do not, and whether they simply want to unlock value after years of investing.

What could go wrong?

Telecom eats cash. Networks need constant spending on 5G, fibre and spectrum, and that usually means debt. Check the borrowings and the interest cover in the filing: {{72IPO: debt, capex}} (link).

Prices are also not fully in the company's hands. Tariffs depend on competitors, and the government decides spectrum rules and licence fees. A rival cutting prices can change the story quickly.

Then there is the price itself. A great business at a very high price can still give a poor return.

Is the price fair?

Take the valuation and put it next to Bharti Airtel, the nearest listed peer. A mango seller who charges triple the neighbouring stall needs a very good reason, and the same test applies here.

Valuation versus peers: {{72IPO: P/E, EV/EBITDA vs Airtel}} (link)

Do very large IPOs tend to pop on listing day?

Not reliably. When an IPO is huge, many shares have to be absorbed by buyers, which can leave less room for a sharp first-day jump. Look at how earlier large issues behaved after listing: {{72IPO: large IPO listing and post-listing returns}} (link).

How might different investors read this IPO?

If this is your first IPO, read the price band against the company's revenue and profit, and set aside the brand you love. Decide how much money you are comfortable having tied up until allotment and listing, because one application is all it takes to take part.

If you apply regularly, compare the subscription numbers by category once the issue opens. Institutional demand has often told a clearer story than retail excitement.

If you read filings for a living, spend your time on the debt schedule, the promoter's selling share, related party dealings with the rest of the Reliance group, and what the lock-in dates mean for supply after listing.

What does 72Money say?

Our analysts read the filing line by line, and our AI + Quant model scores the numbers separately so the two views can be checked against each other. The AI Prediction, Expert Review and AI Pulse for this IPO are on its 72IPO page (Jio Platforms on 72IPO).

You can also see how our past IPO ratings played out after listing, hits and misses included (how our ratings performed).

All content and analytics on this platform are for educational and informational purposes only. We are awaiting SEBI registration. This article is not investment advice or a recommendation to buy or sell any security. Please consult a qualified financial advisor before investing.