Awfis Space Solutions has sold its facility management division, Awfis Care, to SMS Integrated Facility Services, a Samara Capital company, for INR 27.50 crore. The transaction, expected to close in 120 days, allows Awfis to focus on expanding its flexible workspace offerings while enhancing its financial position. Awfis aims to leverage the liquidity gained to invest in growth and innovation, optimising its return on capital. Leveraging its extensive expertise in facilities management, SMS IFS will take over the division, allowing Awfis to optimise its operations and focus on creating value for its primary stakeholders.
Awfis Space Solutions signed a strategic business transfer agreement with SMS Integrated Facility Services (SMS IFS), a Samara Capital-backed company, to divest its facility management division, Awfis Care, for INR 27.50 crore. Maple Capital Advisors acted as financial advisors, and Singhania & Co. provided legal counsel. They plan to close the deal within 120 days. This sale is a significant move for Awfis, as it frees up working capital and enhances liquidity.
By doing so, Awfis will improve its working capital cycle, granting the company greater financial flexibility to invest in core areas like business expansion and technological innovation. We anticipate this transaction to be cash flow accretive, which will help the company optimise its return on capital employed (ROCE). Awfis aims to use its capital more efficiently, maximising long-term returns for shareholders while continuing to enhance operational efficiency.
Amit Ramani, Managing Director and Chairman of Awfis Space Solutions, expressed that the partnership with SMS IFS is a strategic shift in how the company will focus its resources. By divesting the non-core facility management division, Awfis can now prioritise its flexible workspace offerings, expand its network, and strengthen customer experiences through advanced technology and innovation. Ramani further underscored that this move represents the company's commitment to delivering robust financial performance, operational excellence, and superior service to clients, all of which create value for stakeholders.
SMS IFS is an established leader in the facilities management sector, managing over 5,000 sites for more than 500 clients across India's Tier I, II, and III cities. With over 21,000 employees, the company provides a comprehensive range of services, from soft services and technical management to sustainability consulting. This acquisition allows Awfis to leverage SMS's expertise in digital operations, workforce management, and cost optimisation to drive better results while reducing the administrative and compliance burden that comes with in-house facility management operations.
Awfis also anticipates a seamless transition, ensuring high standards of governance and compliance as SMS takes over the division. This alignment will further streamline Awfis's business operations, enabling it to focus on scaling its flexible workspace model while benefiting from SMS's established capabilities in facility management.
As Awfis continues its expansion into India's growing workspace market, this divestiture strengthens the company's financial and operational foundations. Awfis remains committed to innovation, scalability, and delivering unmatched value in the flexible office space sector, positioning itself for long-term growth and success.
Advertisement
Facebook
Whatsapp
