Tata Power shares fall 4%: $490 million arbitration challenge lost in Singapore

Shares of Tata Power Company Ltd fell 4 per cent in Thursday's trade after the Tata group firm informed stock 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 in arriving at the final award regarding a 2025 case.

The order pertained to a challenge filed by Tata Power to the $490 million 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.  Tata Power had challenged the quantum of the damages awarded to Kleros.

Following the development, the Tata stock fell 4.28 per cent to hit a low of Rs 349.70 apiece on BSE.

Tata Power had also challenged 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 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.

Tata Power shares have 15 'Buy' recommendations, six 'Hold' ratings and four 'Hold' calls. The 12-month consensus target price on the stock at Rs 431.60 implied 18.6 per cent potential upside.

The fresh announcement by Tata Power comes days after the company said its subsidiary Tata Power Renewable Energy Limited (TPREL) commissioned its 190.5 MW Solar FDRE project at Kalasar, Bikaner, Rajasthan which is under the contractual capacity of 460 MW Firm and Dispatchable Renewable Energy (FDRE) project.

The 190.5 MW project has been developed under SJVN FDRE Tranche-1. The project will supply energy to Haryana Power Purchase Centre (HPPC), Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Noida Power Company Limited (NPCL) discoms.