Tata Power Company Limited has informed the Exchange about Update on Litigation
TATAPOWER · price
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Awaiting price reaction for this filing.
Tata Power has received an adverse arbitration award from the Singapore International Arbitration Centre (SIAC) in a dispute with Kleros Capital Partners Limited, which had sued the company in November 2020. A 3-member arbitral tribunal ruled 2:1 in favour of partially allowing Kleros's claim, awarding damages of USD 490.32 million (approximately ₹4,170 crore) with 5.33% simple interest accruing from November 30, 2020, plus costs of USD 8.29 million (approximately ₹705 crore) with interest from July 1, 2025. Total potential liability is roughly USD 498.6 million plus running interest, which could exceed ₹4,800 crore. The company is reviewing the award and evaluating all options, including challenging it. This is a continuation of an earlier intimation from August 18, 2023.
This is a significant negative development for Tata Power shareholders. An adverse arbitration award of nearly ₹4,200 crore in damages (plus interest) represents a material financial liability, though the company still retains the option to challenge or set aside the award. The stock may face short-term pressure on the news, with the extent of impact depending on whether Tata Power can successfully overturn or reduce the award on appeal.