On Wednesday, HUDCO’s share price saw an impressive uptick, defying the downward trend of the Indian stock market triggered by the Reserve Bank of India’s recent monetary policy announcement. The shares surged by 1.73%, reaching ₹210.65 each on the BSE. This positive movement came on the heels of HUDCO’s announcement regarding its approval to issue Capital Gain Tax Exemption bonds, providing a significant boost to investor confidence.

HUDCO Secures Approval for Tax Exemption Bonds

In a crucial development, Housing & Urban Development Corporation Ltd (HUDCO) has received the green light from the Central Board of Direct Taxes (CBDT) to issue Capital Gain Tax Exemption bonds starting from April 1, 2025. According to a regulatory filing made on April 9, HUDCO stated:

“The CBDT has permitted us to issue bonds under Section 54EC of the Income-tax Act, 1961, effective from April 1, 2025.”

This move is expected to attract more investors, as it allows individuals to save on capital gains tax when they invest in these bonds.

Collaboration with MMRDA

In another exciting development, HUDCO has signed a Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA) on April 8, 2025. This agreement aims to create a collaborative framework for infrastructure projects within the Mumbai Metropolitan Region.

• Funding Commitment: HUDCO plans to provide up to ₹1,50,000 crore over the next five years.
• Additional Services: The company will also offer consultancy and capacity-building services to assist MMRDA in meeting its evolving infrastructure needs.

HUDCO Stock Performance Insights

Over the past month, HUDCO’s shares have surged by 15%, showcasing strong market performance. However, the stock has experienced a 12% decline year-to-date. Despite a relatively stable one-year performance, HUDCO has delivered remarkable returns over a longer period:

• 372% increase over the last two years
• 864% increase over the past five years

As of 1:25 PM, HUDCO’s shares were trading at ₹209.80, reflecting a 1.33% rise, signaling ongoing investor interest.

Conclusion

The recent developments surrounding HUDCO, including the approval for tax exemption bonds and the strategic partnership with MMRDA, are poised to enhance its growth trajectory. Investors may want to keep an eye on HUDCO as it continues to make significant strides in the infrastructure financing sector. For more updates on stock performance and investment opportunities, check out our latest articles on stock market trends and investment strategies.