Awfis Sells Facility Management Arm to SMS IFS for ₹27.5 Crore

On September 9, 2024, Awfis Space Solutions Limited, India’s leading flexible workspace provider, announced it has signed a Business Transfer Agreement with SMS Integrated Facility Services Private Limited (SMS) to sell its facility management division, Awfis Care, for ₹27.5 crore. Maple Capital Advisors acted as the sole advisor to Awfis for this deal, which is expected to close within 120 days.

SMS, a Samara Capital-backed company, is one of India’s top facility management firms, overseeing over 5,000 sites for more than 500 clients across the country. It employs more than 21,000 people and offers services like technical support, soft services, and sustainability consulting.

This sale will allow Awfis to benefit from SMS’s expertise in areas like staff management, digital operations, and facility cost optimisation while also ensuring high compliance and governance standards. The move will help Awfis reduce administrative costs and improve operational efficiency.

The deal will also improve Awfis’s cash flow by freeing up working capital, helping to enhance its working capital cycle. This increased cash flow will give the company more financial flexibility to invest in its growth and expansion plans. Awfis expects this move to positively impact its return on capital employed (ROCE), making better use of its capital to generate higher and more sustainable returns for its shareholders.

Amit Ramani, Managing Director and Chairman, Awfis Space Solutions, said, “We are pleased to announce the strategic divestiture of our Facility Management business to SMS Integrated Facility Services, a company recognised for its technology-driven capabilities. By partnering with a specialist like SMS, we can effectively allocate our capital and management resources toward key priorities, such as strengthening our position in the flexible workspace market, expanding our network, and driving innovation in customer experience and technology integration.”

He further added, “This divestiture reinforces our commitment to creating value for our stakeholders by delivering strong financial performance, operational excellence, and exceptional service to our clients.” 

Awfis Space Solutions Ltd

Awfis Space Solutions Ltd is India’s top provider of flexible workspace solutions, offering a network of spaces that both small and large businesses can easily book and use according to their needs. Their services include coworking spaces, customised managed offices, and mobility solutions. Awfis also provides design and build services through Awfis Transform, creating workspaces that fit modern business needs. This integrated approach ensures they can meet a variety of workspace requirements, from design to setup.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.