Target: ₹422

CMP: ₹351.65

Tata Power’s longstanding dispute with Kleros Capital is back in focus after a Singapore court rejected the former’s challenge to arbitral awards issued last year. Kleros Capital and Tata Power had signed an NDA in 2013 to explore coal mining in Russia to source lower-cost coal for its Mundra plant.

The partnership later broke down, after which Tata Power obtained the mining licence independently through a Russian subsidiary in 2018. Kleros alleged that Tata Power breached its confidentiality obligations and commenced arbitration proceedings in Nov’20.

Meanwhile, the coal exploration project of Tata Power also did not advance. The tribunal held Tata Power liable for breaching NDA and directed it to pay USD 490mn in damages with interest. Tata Power appealed to Singapore International Commercial Court (SICC) to set aside the SIAC arbitral award, but the appeal was rejected. Tata Power has 28 days to appeal to Singapore Court of Appeal (SCA).

We estimate a provision of ₹6,000 crore ($650 million), representing 4-5 per cent of our target valuation. We maintain Buy with a target price of ₹422 (earlier ₹444), factoring in FY26 actuals.

Published on August 28, 2026


Source link

Author

Shin John
Shin JohnYtv Market News
Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.