Simplex Realty Commits ₹350 Million to Subsidiary, Signals Strategic Push into Affordable Housing

Image Source: MoneyControl

Simplex Realty Ltd has approved an investment of ₹350 million in its wholly owned subsidiary, Simplex Modern Homes Pvt Ltd, marking a significant step toward expanding its footprint in the affordable housing and mid-income residential segment. The decision was finalized at the board meeting held on July 16, 2025.

Key Highlights:

The ₹350 million infusion will be made through equity subscription, strengthening the subsidiary’s capital base for upcoming real estate projects.
Simplex Modern Homes Pvt Ltd was incorporated in March 2025 as a special purpose vehicle to undertake residential development and general contracting.
The subsidiary is expected to launch its first project in Navi Mumbai by Q4 FY26, targeting 2BHK units priced under ₹60 lakh.

Strategic Context:

The move aligns with Simplex Realty’s diversification strategy, shifting from legacy commercial assets to scalable residential ventures.
The company aims to leverage government incentives under PMAY and urban infrastructure schemes to accelerate approvals and reduce project costs.
Promoter holding remains stable at 54.91 percent, and the investment is structured to preserve control while unlocking growth.

Market Outlook:

Analysts view the capital deployment as a forward-looking step, especially given Simplex’s low leverage and improving cash flows.
The real estate sector’s recovery and rising demand for affordable housing in Tier-I and Tier-II cities could support long-term value creation.

Sources: Screener.in, Economic Times, Rediff MoneyWiz, Simplex Realty BSE Filings (July 2025)