NTPC Green Energy Ltd. will launch its much-awaited initial public offering (IPO) on Tuesday, aiming to raise Rs 10,000 crore through a fresh issue of around 92.6 crore shares.

The offering is expected to make waves as one of the biggest IPOs in India this year, after Hyundai Motor India Ltd. and Swiggy Ltd. The company’s flagship book will be available for subscription on Monday.

Priced between Rs 102 and Rs 108 per share, the IPO positions NTPC Green Energy at a market capitalization of Rs 91,000 crore in the upper range. Of the total supply, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

For retail bidders, the limit is set at Rs 2 lakh; however, NTPC shareholders can bid up to Rs 4 lakh under special reservation.

Proceeds from the IPO will primarily be aimed at debt reduction, with 75 per cent of the Rs 10,000 crore raised going towards debt repayment. NTPC Green Energy Ltd. (NGEL), a renewable energy arm of NTPC Ltd., has ambitious growth plans that include expanding its portfolio to include battery storage systems, hybrid energy projects and the development of a green hydrogen hub in Andhra Pradesh.

Founded in 2022, NGEL currently manages a total renewable energy portfolio of 25.67 gigawatts (GW), of which 2.93 GW is in operation. The portfolio includes 20.32 GW of solar capacity and 5.35 GW of wind power.

Financially, the company has made solid progress this financial year, achieving 51% of last year’s revenue in the first half alone. Upcoming projects could bring capacity additions of 3 GW this fiscal year and 8 GW by fiscal 2027.

As of fiscal 2024, the company faced some key operational risks. More than 87% of NGEL’s revenue depends on its top five customers, with one customer contributing approximately half of its revenue.

Additionally, most of NGEL’s renewable energy projects are concentrated in Rajasthan, making them potentially vulnerable to regional disruptions. Supply chain challenges and commodity price volatility also pose potential risks for the company as it expands its operations in the coming years.