Tata Power Shares Fall 3.65% After Singapore Court Rejects Appeal

Tata Power’s stock saw a significant intraday drop of 4.7% on Thursday, reaching a low of Rs 348.20. This decline followed the Singapore International Commercial Court’s rejection of the company’s appeal against a substantial arbitration award.

The court dismissed Tata Power’s challenge against damages owed to Kleros Capital Partners, also rejecting claims of a natural justice breach. The stock ultimately closed at Rs 352 per share, marking a 3.65% decrease on the BSE.

Arbitration Award Details

The core of the dispute involves a $490 million arbitration award to Kleros Capital Partners. This award is linked to Tata Power violating an agreement concerning a bid for a Russian coal asset.

The breach reportedly denied Kleros Capital Partners the opportunity to benefit from the venture. The closing price of Rs 352 represents Tata Power’s lowest since January 28, 2026.

Potential Payouts and Next Steps

Tata Power now faces a potential payout exceeding $640 million, according to a Bloomberg report citing Morgan Stanley. This figure includes the initial $490.3 million claim, approximately $10 million in legal and additional arbitration costs, and 5.33% interest accrued since November 2020.

This total liability constitutes about 5% of the company’s current market capitalization. Tata Power has a 28-day period to appeal the Singapore International Commercial Court’s decision at the Singapore Court of Appeal, and the company has stated its intention to pursue this option.

Timeline of Legal Proceedings

The Singapore International Commercial Court delivered its judgment on August 26, 2026. This ruling stemmed from Tata Power’s challenge against arbitral awards issued on July 1, 2025, and August 27, 2025.

These prior awards originated from arbitration proceedings initiated by Kleros against Tata Power on November 30, 2020. Tata Power also contested a June 5, 2025 decision by the Singapore International Arbitration Centre (SIAC) Court, which had rejected its challenge to the appointment of two arbitrators.

The Singapore International Commercial Court ultimately concluded there was no breach of natural justice or the fair hearing rule by the majority in reaching the final award. Tata Power’s impending appeal will be closely watched for further market implications.