Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015- Permission to issue Capital Gain Tax Exemption bonds under Section 54EC of Income Tax Act, 1961
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IREDA has received approval from the Central Board of Direct Taxes (CBDT) to issue Capital Gain Tax Exemption Bonds under Section 54EC of the Income Tax Act, 1961, effective July 9, 2025. These bonds will have a 5-year lock-in period and will be classified as a 'long-term specified asset' for tax-saving purposes. Investors can use these bonds to park capital gains from sale of assets (like property) and claim tax exemption. The funds raised must be used exclusively for renewable energy projects that can repay debt from their own project revenues, without relying on state government support. IREDA is a government-owned Non-Banking Financial Company (NBFC) focused on renewable energy financing.
This is a positive development as it opens a new, low-cost funding avenue for IREDA, which has been aggressively raising capital to finance India's growing renewable energy pipeline. The 54EC bond route is expected to attract tax-saving investors and could support loan book growth. Retail shareholders may view this as a sign of stronger fundraising capability, though it does not directly impact equity dilution.