Tata Power falls 4% after $490 million arbitration challenge fails

Tata Power share price came under pressure, falling over 4 per cent on Thursday after the company lost its challenge to a $490 million arbitration award against Kleros Capital Partners concerning a proposed bid for a coal asset in Russia.

 

As of 10:21 AM, the company’s share price was trading 3.98 per cent lower at ₹349 apiece; meanwhile, Nifty 50 was trading 0.07 per cent lower at 24,188.75. Intraday, the stock fell 4.3 per cent to ₹348.20.

 

The company informed the exchanges that the Singapore International Commercial Court has dismissed the Company’s challenge, holding that there was no breach of natural justice or the fair hearing rule by the majority in arriving at the final award. 

 

 

“The Company has 28 days from August 26, 2026 to appeal the decision of the Singapore International Commercial Court to the Singapore Court of Appeal. The Company will be filing an appeal against the decision of the Singapore International Commercial Court within this time period,” Tata Power said. 

 

Vipin Kumar, AVP research at Globe Capital Market, noted that the company extended Wednesday's decline on Thursday after the company lost a challenge to a $490 million arbitration award in Singapore. At the current juncture, it is trading on the verge of a breakdown from the confluence zone of price support and an upward-sloping trendline placed at the ₹348–₹340 spot zone. “A decisive close below ₹340 could further drag it lower towards the ₹327–₹322 support zone. We expect prices to stabilise around these support levels,” he added.

 

The arbitration, conducted under the Singapore International Arbitration Centre (SIAC) rules, stems from claims made by Kleros that Tata Power breached confidentiality and non-circumvention clauses outlined in a Non-Disclosure Agreement. The NDA was signed as part of discussions for a potential coal mining partnership in Russia. 

 

In a stock exchange filing dated 2 July 2025, Tata Power informed investors that the three-member tribunal, by a majority of two to one, has awarded Kleros damages amounting to $490.32 million, along with simple interest at the rate of 5.33% from 30 November 2020, until payment is made. Additionally, the tribunal awarded Kleros a further $8.29 million as legal costs, also carrying simple interest of 5.33% from 1 July 2025, until paid.

  

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