IREDA Gets Finance Ministry Approval for Issuance of Capital Gains Tax Exempted Bonds
By Ankur Chandra | Published at: Jul 10, 2025 02:18 PM IST
New Delhi, July 10, 2025 – Indian Renewable Energy Development Agency Ltd (NSE: IREDA, BSE: 544026) has received approval from the Ministry of Finance to issue Capital Gain Tax Exemption Bonds under Section 54EC of the Income Tax Act, 1961. This will be a critical landmark for the Agency, as it will increase fundraising capacity while offering tax-saving instruments to individuals with capital gains.
According to the Income Tax regulations, any taxpayer who has incurred a long-term capital gain from the sale of assets can invest in prescribed bonds (listed under Section 54EC, including those of the National Highways Authority of India (NHAI), Rural Electrification Corporation (REC), or any other bond notified by the Central Government). With this notification, taxpayers looking to save CGT may now prefer IREDA over traditional options, potentially lowering IREDA’s cost of debt and broadening its bond base.
According to a notification dated July 9, 2025, the bonds will be categorized as long-term specified assets and will be redeemable after a five-year period. The proceeds will be strictly utilized for renewable energy projects that are independently bankable, without reliance on state government guarantees.
At 01:00 PM, IREDA’s stock traded at ₹169.52 (2.18% higher than the previous close).
Stock Market Reaction
IREDA Stock Snapshot (as of July 10, 2025, 12:06 PM IST)
| Metric | Value |
|---|---|
| Last Traded Price | ₹169.52 |
| Previous Close | ₹165.91 |
| Day’s Range | ₹167.00 – ₹169.60 |
| VWAP (Volume Weighted Avg) | ₹168.50 |
| Traded Volume (Lakhs) | 103.52 |
| Traded Value (₹ Cr.) | ₹174.43 |
| Market Cap (₹ Cr.) | ₹47,386.11 |
| 52-Week High | ₹310.00 (Jul 15, 2024) |
| 52-Week Low | ₹137.01 (Mar 17, 2025) |
| P/E Ratio | 27.44 |
| Index Inclusion | NIFTY MIDCAP 100 |
Investor Demand
With over 14.5 lakh shares on the buy side compared to 3.2 crore on the sell side, investor interest remains active. The stock is trading within a wide 52-week range, and the introduction of tax-saving instruments is expected to improve funding access for clean energy expansion.
About the Company
Indian Renewable Energy Development Agency Ltd. (IREDA) is a government-owned NBFC operating under the Ministry of New and Renewable Energy. The company provides dedicated financing for renewable energy and energy efficiency projects across India. It was listed on the NSE and BSE on November 29, 2023.
REF: https://nsearchives.nseindia.com/corporate/IREDAEQ_10072025113941_SignedBonds.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
