IREDA share rises as govt grants Section 54EC Tax Benefit Status to IREDA Bonds; New Price Target is expected
The stock opened today at Rs 167.00 and reached an intraday high of Rs 170.16 at BSE.
Shares of Navratna CPSE, Indian Renewable Energy Development Agency Ltd (IREDA) surged by over 1.8 percent as the Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified bonds issued by Indian Renewable Energy Development Agency Ltd. (IREDA) as a ‘long-term specified asset’ under section 54EC of the Income-tax Act, 1961. The notification came into effect from July 9, 2025.
As per the notification, bonds redeemable after five years and issued by IREDA on or after the notification date will qualify for tax exemption benefits under section 54EC, of the Income Tax Act, 1961, which allows capital gains tax exemption on investments in specified bonds.
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The bonds will be utilised exclusively for renewable energy projects capable of servicing debt through their project revenues, without dependence on State Governments for debt servicing.
With this, the eligible investors can save tax on Long Term Capital Gain (LTCG) up to Rs. 50 Lakhs by investing in these Bonds in a Financial Year.
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The stock opened today at Rs 167.00 and reached an intraday high of Rs 170.16 at BSE. The 52-week high is at Rs 310.00 and the 52-week low is at Rs 137.01. In a recent comeback, the stock has been revived by 0.93% in last five sessions of trading. However, it has fallen over by -23.53% in YTD basis.
IREDA Price Target:
With a new optimistic point of view the new shares price target for 2025 is estimated to range around from Rs 170 to Rs 270 and some analysts a short-term target is also expected. Meanwhile, as per ET Now the stock has good potential optimistic view to reach Rs 300 within a year and Rs 425 in the long-term.
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