India's biggest IPO story explained | The valuation school

If you’re preparing for CFA, this series will change the way you follow financial news. In this video, we connect CFA concepts with the Jio Platforms IPO, India’s biggest IPO, and show you how a finance professional analyses a large IPO: the deal structure, where the money goes, how a telecom company earns, operating leverage and valuation using P/E, EV/EBITDA and returns. Explained in simple Hindi for CFA aspirants and candidates. 👉 In this session, you’ll learn about: • Why Jio is set to launch India’s biggest IPO while selling only a small slice of the company, and how SEBI’s minimum public offer rule for very large companies works • Where the IPO money goes and how a fresh issue used to repay debt changes a company’s balance sheet • The difference between a fresh issue and an Offer for Sale (OFS), and why Reliance dropped its OFS plan • How the 2005 Ambani split, the end of the non-compete clause in 2010 and the Infotel spectrum deal led to the birth of Jio • Why spectrum and licences are the entry ticket in telecom, and why Jio needed a Unified Licence to offer voice calls • How market-penetration pricing helped Jio add customers at record speed and reshaped industry competition • How Reliance’s net debt reached ₹1.54 lakh crore and how a rights issue and the sale of about 33% of Jio Platforms to global investors reduced it • Why Reliance preferred a lower IPO valuation to avoid listing-day losses, and how early investors’ returns compare with the S&P 500 • How a telecom company earns revenue using customers × ARPU • Why prepaid recharges create stable, SIP-like monthly revenue • The three biggest costs in telecom (network, depreciation and amortisation, and government fees) and how much of every ₹100 of revenue they take • How Jio’s tower-rental model differs from Airtel’s ownership stake in Indus Towers, and what it does to the cost structure • What operating leverage is and how Jio’s revenue growing faster than its network cost lifted its EBITDA margin • How Jio earns through four offerings: mobile broadband, fixed broadband, enterprise and digital services • Who leads the mobile and fixed broadband markets, and how much room fixed broadband has to grow compared with the global benchmark • How to turn an IPO price band into a post-issue company valuation • Why Jio looks cheaper than Airtel on P/E, and why multiples should never be read in isolation • How lower Return on Net Worth (RoNW) and Return on Capital Employed (ROCE) could explain a lower P/E • Why Jio looks more expensive on EV/EBITDA, and how this multiple captures both equity and debt • Which factors to track when comparing telecom companies: customers, ARPU, churn, EBITDA margin and EBITDA left after capex • How to combine IPO structure, capital raising, operating leverage, P/E, EV/EBITDA and returns into one view on whether Jio deserves a telecom multiple or a tech multiple This video helps you move beyond textbook learning and understand how analysts size up a big IPO. They read the deal structure, the business model and the valuation together, and test each one against the others. Want to revise what you learned in this video? I have created additional resources to help you understand and test your knowledge of Bond Selloff: 📑 Session Slides: Download the complete presentation used in this video and revise the concepts: https://drive.google.com/file/d/1iLMh... 📊 Video Concepts Summary Two pager: https://drive.google.com/file/d/16fHV... 📝Test Your Understanding: https://docs.google.com/forms/d/e/1FA... ------------------------------------------------------------------------------------------------- Starting your CFA Level 1 journey? Join our CFA Level 1 Classes at Parth Verma Classes: ✅300+ hours of core learning lectures ✅50+ hours of quick revisions video ✅10+ hours of Practice questions solving ✅Concise TVS Revision Notes ✅CFA-Style Question Packs ✅Doubt Solving Forum ✅Practical learning sessions Enroll Now: https://thevaluationschool.in/CFAL1 Brochure: https://thevaluationschool.in/CFAbroc... -------------------------------------------------------------------------------------------------- 👉 Stay connected with us: - Instagram handle (TVS): https://thevaluationschool.in/instgra... Instagram handle (Parth Verma Classes): https://thevaluationschool.in/instagr... Newsletter - https://thevaluationschool.in/newslet... WhatsApp Channel- https://thevaluationschool.in/wachann... LinkedIn (Parth Sir): https://thevaluationschool.in/linkedinPV LinkedIn (The Valuation School page) - https://thevaluationschool.in/linkedi...