North India Statesman
[ad_1]
Tata Power Share: Tata Power shares fell by 2 percent in intraday trading on Thursday, 3 July. The decline came after the Singapore Tribunal ordered a fine of about Rs 4,200 crore to Claros Capital Partners. The decision was taken by a mediated tribunal formed under the rules of Singapore International Arbitration Center (SIC). This decision has come as a shock for the company and has raised concerns among investors about potential financial impact.
Around 10 am, Tata Power shares were trading at Rs 396.60 per share on NSE by more than 2%. This year, the company’s shares have been almost stable so far, with a gain of 1.5%. The stock market capitalization is Rs 1.27 lakh crore.
What is the case?
The case is related to Claros Capital Partners, partner of Tata Power in the Russian Coal Mining Project. Claros alleges that Tata Power violated provisions of privacy and non-discourse, which were determined under the Non-Compression Agreement (NDA) between the two companies.
Judgment decision
The Singapore International Arbitration Center passed the order with a 2: 1 majority. It directed Tata Power to pay $ 498 million (about Rs 4,200 crore) with interest at the rate of 5.33% per year from November 30, 2020 to the date of payment. Along with this, the company will also have to pay a legal cost of $ 8.29 million, which will get interest at the rate of July 1, 2025 to 5.33%.
Company’s response
Tata Power said in the information given to the stock exchange that it is reviewing the decision. The company said that all legal options, including a possible challenge, are being considered.
financial performance
In the March quarter of FY 2025, the net profit of Tata Power increased by 24% to Rs 1,306 crore on an annual basis. While the company’s revenue increased by 7.9% to Rs 17,096 crore during this period. Tata Power’s Operating Profit (Ebitda) rose by 39.2%, while the operating margin increased from 14.7% to 19%.
The board of Tata Power has declared the final dividend of Rs 2.25 per share for FY 2025. This dividend will be approved by shareholders in the 106th AGM to be held on July 4.
