HUDCO Share Price Rise After Approval to Issue Capital Gain Tax Exemption Bonds

HUDCO’s share price gained on Wednesday, even as the broader Indian stock market declined following the Reserve Bank of India’s (RBI) monetary policy announcement. The stock rose by 1.73% to ₹210.65 on the BSE after the company received government approval to issue Capital Gain Tax Exemption bonds. 

Government Approval for Tax-Exempt Bonds 

Housing & Urban Development Corporation Ltd (HUDCO) announced that the Central Board of Direct Taxes (CBDT) has granted approval for issuing Capital Gain Tax Exemption bonds under Section 54EC of the Income-tax Act, 1961. The approval, effective from April 1, 2025, was officially notified on April 7, 2025. 

Read More CRISIL, Ashiana Housing, and Others in Focus for Dividend, Stock Split, and Rights Issue.   

HUDCO Signs MoU with MMRDA 

In another significant development, HUDCO signed a Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA) on April 8, 2025. Under this agreement, HUDCO will explore funding of up to ₹1,50,000 crore over five years for infrastructure projects in the Mumbai Metropolitan Region. 

Additionally, HUDCO will provide consultancy services and capacity-building support to MMRDA to enhance project implementation. 

HUDCO Share Price Performance 

HUDCO’s stock has seen strong gains over the past month, rising by 15%. However, on a year-to-date (YTD) basis, the stock has declined by 12%. Over the last year, it has remained mostly stable but has delivered exceptional long-term returns. 

• 2-year gain: 372% 

• 5-year gain: 864% 

As of 1:25 PM, HUDCO shares were trading 1.33% higher at ₹209.80 on the BSE. 

Conclusion 

HUDCO’s recent approvals and partnerships strengthen its position in infrastructure financing. While the stock shows mixed short-term trends, its long-term returns remain strong. 

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