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Shares of Tata Power Company Ltd are in focus on Tuesday morning after the Tata group firm said it has commenced solar cell production its 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu. The largest domestic single-location facility, which is equipped with advanced TOPCon and Mono Perc technology to enhance solar cell efficiency, is seen bolstering domestic manufacturing of cell and module, adding to India’s solar energy and net-zero goals.

Tata Power shares delivered a flat return in the past one month but have jumped 26 per cent in 2024 so far.

TP Solar, a Tata Power Renewable Energy Limited (TPREL) subsidiary, commenced commercial production from the 2GW solar cell line at its facility. This milestone follows the successful production of solar modules earlier this year. TPREL is a subsidiary of Tata Power Company.

The solar cell production, currently at 2 GW capacity will enhance Tata Power’s ability to meet the growing demand for high-quality, and domestically produced solar components, especially for large-scale capacity-addition projects, Tata Power said in a BSE filing.

“The plant is expected to ramp up production with the remaining 2 GW capacity to be added over the next 4-6 weeks, reaching peak production within the next few months,” the Tata group firm said.

Having a total cell & module manufacturing capacity of 4.3 GW, the module production line at the Tirunelveli plant was commissioned in October 2023 and has produced 1250 MW of solar modules till date.

Tata Power has committed nearly Rs 4,300 crore towards the establishment of the facility. The solar cells and modules produced at the Tamil Nadu facility will initially cater to the company’s ongoing projects, strengthening its supply chain. Tata Power also plans to explore opportunities for wider market distribution.

In addition to the Tirunelveli plant, the company also operates a manufacturing facility in Bengaluru, Karnataka. This facility has a production capacity of 682 MW for solar modules and 530 MW for solar cells. To date, it has supplied a total of 3.73 GW of solar modules and 2.26 GW of solar cells.

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Suzlon Energy Ltd. informed the exchanges on Monday that it has won an order of 1,166 MW from NTPC Green Energy Ltd., the renewables arm of state-run NTPC Ltd.

This is the largest wind energy order in India, the company said in the exchange filing.

Suzlon will install a total of 370 wind turbine generators (WTGs) of S144 equipped with a hybrid lattice tubular (HLT) tower and a rated capacity of 3.15 MW each at two projects of NTPC Renewable Energy and one project of IndianOil NTPC Green Energy Pvt. Ltd. in the state of Gujarat.

The order win takes Suzlon’s total cumulative order book now to its largest every size of close to 5 GW.

“This marks our first direct wind energy order from NGEL, signaling Suzlon’s triumphant return to the PSU customer segment,” Girish Tanti, Vice Chairman of Suzlon Group was quoted as saying.

Suzlon Group CEO JP Chalasani said that while this is India’s largest wind energy order, the project is also the first of many more such between the two companies in the future.

As part of the order, Suzlon will supply the wind turbines and execute the project, including erection and commissioning, in Gujarat as well as undertake operations and and maintenance services post-commissioning.

In an interaction with CNBC-TV18 on September 5, Suzlon Group CFO Himanshu Mody said that there are no further non-core assets that the company intends to monetise.

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Electric two-wheeler maker Ather Energy has filed its draft red herring prospectus (DRHP), which proposes a fresh issue of shares worth ₹3,100 crore through its initial public offering (IPO).

The Bengaluru-based company’s IPO combines a fresh issue and an offer for sale of up to 2.2 crore equity shares with a face value of ₹1 each.

Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures and cofounders Tarun Mehta and Swapnil Jain are among the investors who will offload their shares via OFS.

The proceeds from the IPO will be used to set up the company’s electric two-wheeler factory in Chhatrapati Sambhajinagar, Maharashtra, to manufacture and assemble electric two-wheelers and batteries. The company plans to commence production in a phased manner at the facility by May 2026 with a targeted capacity of 0.5 Mn E2Ws.

Part of the IPO proceeds will also be used for research and development (R&D), marketing initiatives, infrastructure, production initiatives, and other general corporate purposes.

Ather joined the unicorn club recently after raising ₹600 crore ($71 Mn) from its existing investor, the National Investment and Infrastructure Fund (NIIF), at a post-money valuation of $1.3 billion.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is the fourth biggest player in the Indian market, behind Ola Electric, TVS Motor, and Bajaj Auto.

As per its DRHP, Ather Energy widened its consolidated net loss to ₹1,059.7 crore in the financial year 2023-24 (FY24) from ₹864.5 crore in the preceding fiscal year, while the revenue from operations stood at ₹1,753.8 crore.

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Byju’s, the once high-flying edtech startup, is facing yet another setback as BDO (MSKA & Associates), its auditor, has resigned amid concerns over financial and governance issues.

BDO’s exit comes just more than a year after Deloitte, the company’s previous auditor, stepped down citing problems with Byju’s financial reporting.

In its resignation letter, BDO highlighted several troubling issues, including delays in financial reporting, lack of support from the management, and concerns over recovering outstanding dues from a Dubai-based entity.

Specifically, BDO raised doubts about the recovery of approximately Rs 1,400 crore from More Ideas General Trading LLC, a reseller based in Dubai. The transaction was reported to the Ministry of Corporate Affairs on September 2.

BDO also pointed to other challenges facing Byju’s, such as ongoing litigation, liquidation proceedings initiated by creditors, and allegations of mismanagement by minority shareholders.

Furthermore, BDO stated that Byju’s failed to provide crucial information, including notices for extraordinary general meetings (EGMs) and insolvency proceedings, to its audit team.

What did Byju’s say?

Following the resignation, Byju’s released an official statement, highlighting serious concerns about unethical requests made by BDO.

“Byju’s has complied with every request made by BDO, except those that would require crossing ethical and legal boundaries. The real reason for BDO’s resignation is Byju’s firm refusal to backdate its reports, while BDO went to the extent of recommending a firm that could facilitate such an illegal activity,” the edtech firm said in an official statement.

“Multiple call recordings exist, where BDO representatives explicitly suggest backdating these documents, which Byju’s refused to do. Byju’s strongly believes that this is the main reason for their resignation,” it added.

Blow to Byju’s

The development is a significant blow to Byju’s, which was once valued at $22 billion and hailed as India’s most valuable startup.

The company has faced mounting challenges in recent months, including a Supreme Court ruling to resume insolvency proceedings against it.

BDO was initially appointed as Byju’s auditor in August 2023 after Deloitte’s resignation, filling a vacancy left by the firm.

In December of the same year, BDO was re-appointed as the statutory auditor during the company’s Annual General Meeting, with its term set to run from FY23 to FY27.

Byju’s financial woes began when it delayed the submission of its FY22 financial results to regulators, leading Deloitte to flag discrepancies and eventually resign.

Following BDO’s appointment, Byju’s reported a consolidated loss of Rs 8,245 crore for the fiscal year ending March 31, 2022, against an operating revenue of Rs 5,014 crore.

Meanwhile, the company remains embroiled in multiple legal battles. The Supreme Court recently agreed to expedite a hearing on the appeal of US-based creditor Glas Trust Company LLC, which had contested a previous ruling by the National Company Law Appellate Tribunal (NCLAT).

The NCLAT had stayed insolvency proceedings against Byju’s after approving a settlement of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI).

The Supreme Court had earlier rejected a plea to prevent Byju’s creditors from holding meetings related to the company’s insolvency proceedings. However, a ruling on August 14 reversed the NCLAT’s earlier decision, halting the insolvency process and allowing Byju’s to proceed with its settlement with the BCCI.

The ongoing legal challenges and financial difficulties have raised questions about Byju’s future, once a symbol of India’s booming edtech sector.

With the resignation of BDO, the company now faces mounting pressure to resolve its financial and governance issues to restore confidence among stakeholders.

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The Goods and Services Tax (GST) Council may consider imposing 18% GST on payment aggregators (PAs) for small digital transactions up to Rs 2,000, via debit and credit cards, according to a report by CNBC-TV18.

The proposal will be discussed at the GST Council’s upcoming meeting on September 9.

Payment aggregators, which enable businesses to accept online payments from customers, may soon face this new tax as the GST fitment committee, comprising revenue officials from both the Centre and states, believes that PAs, unlike banks, act as intermediaries for card transactions and should therefore be subject to GST.

The final decision will be made at the GST Council’s 54th meeting, chaired by Finance Minister Nirmala Sitharaman.

A source told the publication that small businesses that deal with a bulk of low-value transactions daily may be impacted negatively if the GST Council moves ahead with the decision.

This is because payment gateways are likely to pass on the burden to merchants and small business owners.

As of now, payment aggregators charge merchants a fee ranging between 0.5% and 2% per transaction. But if the GST is imposed, they are likely to shift this additional cost onto merchants.

Presently, payment aggregators are exempt from GST on transactions below Rs 2,000, as they handle various digital payments like QR codes, POS machines, and net banking.

It is worth mentioning that the service tax on transactions under Rs 2,000 was exempted in 2016 after the demonetization of Rs 500 and Rs 1,000 notes.

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