IREDA, HUDCO shares rise up to 8% in noon session; here’s why
IREDA stock climbed 7.75% to Rs 200 on Wednesday. Market cap of the firm stood at Rs 52,465.66 crore.
- Jun 26, 2024,
- Updated Jun 26, 2024 3:30 PM IST
Shares of Indian Renewable Energy Development Agency (IREDA) and HUDCO surged up to 8% on Wednesday after a report said the upcoming Union Budget is likely to introduce provisions which will help obtain cheaper funds for these firms.
The Modi government is considering including the two state-run companies under Section 54EC of the Income Tax Act. After their inclusion, investors buying bonds of these firms will be exempted from capital gains tax.
Section 54EC of the Income Tax Act states that any long-term capital gains (LTCG) arising from the sale of immovable assets such as land and house are exempt if the money is invested in the PSUs notified under the Section. Bonds of PSUs such as Rural Electrification Corp. Ltd (REC) and Power Finance Corp. (PFC) are currently eligible for such exemptions.
The IREDA stock climbed 7.75% to Rs 200 on Wednesday. Market cap of the firm stood at Rs 52,465.66 crore. Similarly, shares of HUDCO climbed 5.29% to Rs 289.55 on BSE. Market cap of the firm stood at Rs 57,134 crore.
IREDA shares saw a high turnover of Rs 119.39 crore on Wednesday as 61.57 lakh shares changed hands on BSE. IREDA stock rose to its all-time high of Rs 215 on February 6, 2024.
On the other hand, HUDCO shares saw a turnover of Rs 53.82 crore on Wednesday as 18.96 lakh shares changed hands on BSE. HUDCO’s market cap rose to Rs 57,124 crore.
Shares of Indian Renewable Energy Development Agency (IREDA) and HUDCO surged up to 8% on Wednesday after a report said the upcoming Union Budget is likely to introduce provisions which will help obtain cheaper funds for these firms.
The Modi government is considering including the two state-run companies under Section 54EC of the Income Tax Act. After their inclusion, investors buying bonds of these firms will be exempted from capital gains tax.
Section 54EC of the Income Tax Act states that any long-term capital gains (LTCG) arising from the sale of immovable assets such as land and house are exempt if the money is invested in the PSUs notified under the Section. Bonds of PSUs such as Rural Electrification Corp. Ltd (REC) and Power Finance Corp. (PFC) are currently eligible for such exemptions.
The IREDA stock climbed 7.75% to Rs 200 on Wednesday. Market cap of the firm stood at Rs 52,465.66 crore. Similarly, shares of HUDCO climbed 5.29% to Rs 289.55 on BSE. Market cap of the firm stood at Rs 57,134 crore.
IREDA shares saw a high turnover of Rs 119.39 crore on Wednesday as 61.57 lakh shares changed hands on BSE. IREDA stock rose to its all-time high of Rs 215 on February 6, 2024.
On the other hand, HUDCO shares saw a turnover of Rs 53.82 crore on Wednesday as 18.96 lakh shares changed hands on BSE. HUDCO’s market cap rose to Rs 57,124 crore.