Tata Power Faces $650 Million Singapore Seizure Order

A Singapore court has authorised the seizure and sale of TATAPOWER’s shares in two of its Singapore subsidiaries, Bhira Investments and Tata Power International, to recover an arbitration award of more than $650 million (about ₹6,113 crore). Tata Power disclosed on Saturday that it has appealed. The stock fell 3.3% on Friday to ₹352.50. Today’s Muhurat session on NSE and BSE (2:20-3:30 PM) is the first chance for the market to react. The exposure is about 5% of market cap, and the core business is growing steadily. The order: The Singapore International Commercial Court granted enforcement orders on behalf of Kleros Capital Partners, which won an arbitration award against Tata Power. The court dismissed all of Tata Power’s applications to set the awards aside on Aug 26. The amount: The debt is principal of $490.32 million plus 5.33% simple interest from Nov 30, 2020 (about $71,600 a day) plus costs, which is roughly 5.4% of Tata Power’s market cap. Tata Power’s response: Notices of attachment were served on the two subsidiaries on Nov 6. The company has filed an appeal at the Singapore Court of Appeal, engaged legal counsel, and faces an asset disclosure order. Its shares in the two subsidiaries are pledged to a consortium of lenders. Stock setup: It closed Friday at ₹352.50, down 3.31% from ₹364.55, with a low of ₹348.00. The 52-week range is ₹333.20-₹464.90, so it is about 24% below the high, and the P/E is about 29 on a market cap of roughly ₹1.12 lakh crore. Business momentum: Q1 FY27 consolidated net profit rose 11% to ₹1,401 crore and EBITDA rose 8% to ₹4,249 crore, extending a 27-quarter growth run. The Mundra plant resumed full 4,150 MW operations on Apr 1, and Motilal Oswal expects a ₹600-800 crore profit uplift from narrowing Mundra losses.