Awfis enters into biz transfer pact with SMS Integrated Facility Services

Flexible workspace provider Awfis Space Solutions has announced a business transfer agreement with SMS Integrated Facility Services Private Limited (SMS) for the divestiture of its facility management division, Awfis Care, for a sale consideration of Rs 27.5 crore. Maple Capital Advisors served as the advisor to Awfis for this transaction, which is anticipated to be completed within 120 days.

Furthermore, the transaction will be cash flow accretive, freeing up working capital and leading to an improved working capital cycle. This increased liquidity will provide the company with additional financial flexibility to invest in growth and expansion. Awfis also anticipates a positive impact on its return on capital employed (ROCE), optimising the use of capital to generate higher and long-lasting returns for its shareholders.

 

“By partnering with a specialist like SMS, we can effectively allocate our capital and management resources towards key priorities, such as strengthening our position in the flexible workspace market, expanding our network, and driving innovation in customer experience and technology integration. This divestiture reinforces our commitment to creating value for our stakeholders by delivering strong financial performance, operational excellence, and exceptional service to our clients,” said Amit Ramani, managing director and chairman, Awfis Space Solutions.

Samara Capital’s subsidiary, SMS Integrated Facility Services (SMS IFS) Private Limited, is an integrated facilities management firm. It oversees more than 5,000 sites for over 500 clients across Tier I, II, and III cities in India and employs over 21,000 professionals. The company offers a broad spectrum of services, including soft services, technical and managed services, and sustainability consulting. Singhania & Co. served as the legal counsel to Awfis in this transaction.

Awfis believes in benefiting from SMS’s distinctive capabilities in people management, digital operations, and facility cost optimisation, while maintaining the highest compliance and governance. The move will reduce Awfis’s administrative overheads and compliance requirements, and enhance operational efficiencies.