Shares of Tata Power Company Ltd are in news today are in news today after the Tata Group firm said it has been ordered by an arbitration tribunal to pay $490.32 million in damages to Kleros Capital Partners Ltd. The ruling, issued under the Singapore International Arbitration Centre (SIAC) rules, also includes interest and legal costs.
Tata Power shares closed on a flat note on Wednesday at Rs 406.45 on BSE. Market cap of the firm stood at Rs 1.29 lakh crore. Tata Power shares rose 83.25% in two years and 96.35% in three years. In five years, the stock delivered multibagger returns of 715%.
The Tata Group stock touched a record high of Rs 494.85 on September 27, 2024 and fell to a 52 week low of Rs 326.25 on February 17, 2025.
Tata Power received the tribunal’s award on July 1, 2025 after business hours. It is currently reviewing it while considering a potential legal challenge. The dispute arose from Kleros’ claims that Tata Power breached confidentiality and non-circumvention clauses related to a coal mining project in Russia. The arbitration was initiated by Kleros in November 2020, and oral hearings concluded in February 2024. This timeline highlights the prolonged nature of the legal proceedings.
The tribunal, in a 2:1 majority decision, awarded Kleros simple interest of 5.33% on the damages from November 30, 2020, until the payment date. Additionally, Tata Power is directed to pay $8.29 million in legal costs, with interest accruing at the same rate from July 1, 2025. This financial decision comes as Tata Power continues to evaluate the tribunal’s award and other legal options available to them. The company is weighing the possibility of a legal challenge, which could potentially alter the financial obligations imposed by the tribunal.
Tata Power’s recent financial results reflect strong performance, with a 24% year-on-year rise in consolidated net profit for the fourth quarter, amounting to ₹1,306 crore. The company also reported a revenue increase of 7.9% year-on-year, totalling ₹17,096 crore. The EBITDA for the quarter rose significantly by 39.2% year-on-year to ₹3,245.4 crore, highlighting improved operational efficiency.
This performance underscores Tata Power’s robust operational capabilities and strategic focus on enhancing profitability. On another note, the company has proposed a final dividend of ₹2.25 per equity share for FY25, pending approval at the upcoming Annual General Meeting scheduled for July 4, 2025. This proposal reflects the company’s commitment to delivering shareholder value despite the ongoing legal challenges.
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