Tata Power share price fell over 4% on NSE in Thursday’s trading session after the Singapore International Commercial Court rejected the company’s challenge against a $490 million arbitration award.
Tata Power share price opened at ₹358.10 apiece today, as compared to the previous close of ₹365.35 on Wednesday. The stock touched an intraday low of ₹348.20 on 27 August.
What’s weighing on Tata Group stock?
In an exchange filing dated 26 August, Tata Power said that the Singapore court has dismissed the company’s appeal in its long-running dispute with Kleros Capital.
The dispute dates back to 2013, when Kleros approached Tata Power to jointly bid for a Russian coal deposit. As part of the proposed partnership, the two companies entered into a four-year non-disclosure agreement (NDA), allowing them to share confidential information related to the project.
In 2015, the partnership progressed towards discussions over an equity stake in the project. However, the negotiations eventually fell through, and the two companies ended their collaboration in 2016.
A fresh auction for a mining licence at the same Russian coal deposit was held in 2017. While Kleros did not participate in the auction, Tata Power, through its Russian subsidiary, submitted an independent bid and ultimately secured the licence.
Kleros Capital subsequently accused Tata Power of using confidential geological and economic data that had been shared under their earlier partnership. The dispute was eventually referred to the Singapore International Arbitration Centre (SIAC) for resolution.
The SIAC tribunal ruled that Tata Power had breached its agreements and acted in bad faith by misusing confidential information after its partnership with Kleros Capital ended.
Under the award, Tata Power is required to pay $490.32 million in damages, along with annual interest of 5.33% calculated from the end of November 2020, as well as legal costs incurred during the proceedings.
Tata Power challenged the arbitration award before the Singapore International Commercial Court, but the challenge was dismissed on 26 August.
“The Singapore International Commercial Court has issued its judgment on August 26, 2026, which arose out of a challenge filed by the Company to the arbitral awards dated July 1, 2025 and August 27, 2025 in the arbitration proceedings which were initiated by Kleros against the Company on November 30, 2020. The Company had also challenged the Singapore International Arbitration Centre (SIAC) Court’s decision dated June 5, 2025, rejecting the Company’s challenge to the appointment of two arbitrators who issued the majority arbitral award. 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 filing said.
Tata Power share price trend
Tata Power share price trend has remained largely negative amid weak market sentiments. The Tata Group stock has dipped 7% in a week and 18% in three months.
Furthermore, the stock has fallen 8.51% on year-to-date (YTD) and 7.61% in the last one year.
However, looking at the broader level, the stock has delivered multibagger returns of 179% in five years and 362% in ten years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
