IREDA, Hudco's share price zooms up to 8% intraday; check details here

Shares of state owned Indian Renewable Energy Development Agency (IREDA) soared up to 7.7 per cent at Rs 199.35 per share on the BSE in Wednesday’s intraday trade. The stock price is trading near its 52-week high of Rs 215, touched on February 02, 2024. The stock had hit a 52-week low of Rs 49.99 on November 11, 2023. 

Another public sector undertaking Housing & Urban Development Corporation (Hudco) also saw its share rising by 4.7 per cent at Rs 288.15 per share in intraday trade on the BSE. 

According to reports, the positive momentum in the stock prices of these companies came after a government official disclosed that the central government is planning to potentially include these entities under Section 54EC of the Income Tax Act in the upcoming union budget.
 

Reportedly, this move would exempt investors purchasing their bonds from capital gains tax, thereby enhancing the attractiveness of these bonds despite their lower interest rates compared to the broader bond market. 

The strategic move also underscores the government's commitment to incentivizing investments in sectors crucial for sustainable development and economic growth.

IREDA and HUDCO, recently designated as Navratna companies by the government, have been requested to furnish additional information to facilitate their inclusion under Section 54EC, the report said. 

IREDA, operating under the Ministry of New and Renewable Energy, finances projects related to new and renewable sources of energy, as well as energy efficiency and conservation initiatives. On the other hand, Hudco is engaged in providing housing finance and infrastructure project finance.

At 01:16 PM; IREDA’s shares were trading 7.22 per cent higher at Rs 198.35 per share, while Hudco was up by 3.56 per cent at Rs 284.80 per share on the BSE. By comparison the BSE Sensex was up by 0.59 per cent at 78,511 levels.