Tata Power Share Falls After SIAC Orders $490 Million Payout to Kleros Capital; Stock Slips Nearly 2%

Tata Power shares declined by 2% on Thursday after the company announced that an arbitral tribunal, operating under the rules of the Singapore International Arbitration Centre (SIAC), has ordered it to pay over $490 million in damages to Kleros Capital Partners.

Tata Power Share Price Today

NSE: TATAPOWER: As of 12:54 PM on July 3, Tata Power Company Ltd was trading at Rs 399.80, marking a decline of Rs 6.85 or 1.68% for the day. The stock opened at Rs 400.00 and touched an intraday high of Rs 403.70, while the low stood at Rs 396.60. Over the past 52 weeks, Tata Power has recorded a high of Rs 494.85 and a low of Rs 326.35.

Tata Power Company Ltd has been ordered to pay $490.32 million in damages to Kleros Capital Partners Limited. This decision, made by an arbitral tribunal under the Singapore International Arbitration Centre rules, includes interest and legal costs. Tata Power received the tribunal's award on July 1, 2025, after business hours and is currently reviewing its contents while considering potential legal challenges.

The arbitration case was initiated by Kleros in November 2020. The dispute arose from allegations that Tata Power breached confidentiality and non-circumvention clauses in a Non-Disclosure Agreement related to a proposed coal mining project in Russia. Oral hearings for this case concluded in February 2024.

Tata Power Financial Performance: Tata Power Final Dividend

Tata Power reported a 24% increase in consolidated net profit, reaching Rs 1,306 crore compared to Rs 1,045.6 crore the previous year. Revenue also saw a rise of 7.9% year-on-year, amounting to Rs 17,096 crore. The company's EBITDA experienced a significant boost of 39.2% year-on-year, totaling Rs 3,245.4 crore.

The tribunal awarded Kleros simple interest of 5.33% on the damages from November 30, 2020, until payment is made. Additionally, Tata Power must pay $8.29 million in legal costs with interest at the same rate starting from July 1, 2025.

Tata Power's board has proposed a final dividend of Rs 2.25 per equity share for FY25. This proposal awaits approval at the company's 106th Annual General Meeting scheduled for July 4, 2025.

The operational efficiency of Tata Power improved as operating margins expanded to 19% from last year's 14.7%. This growth indicates enhanced performance across its operations.

The tribunal's decision was reached with a majority vote of 2:1 and includes specific instructions regarding interest rates and legal cost payments associated with the case.