Awfis Space Solutions Limited (Awfis), India’s leading flexible workspace solutions company announced that it has entered into 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 Crores. Maple Capital Advisors was the sole advisor to Awfis for this transaction which is expected to be completed within 120 days.
SMS Integrated Facility Services (SMS IFS) Private Limited, a Samara Capital company, is one of India's leading pan-India integrated facilities management firms. It manages over 5,000 sites for more than 500 clients across India’s Tier 1, Tier 2, and Tier 3 cities and employs a workforce of more than 21,000. It provides a wide range of integrated facilities management services, including soft services, technical and managed services, and sustainability consulting. Singhania & Co. acted as the legal counsel to Awfis on this transaction.
Awfis will benefit from the expertise of a specialized player like SMS with their distinctive capabilities in people management, digital operations, and facility cost optimisation, while maintaining the highest standards of compliance and governance. This move will reduce Awfis’s administrative overheads, compliance requirements, and enhance operational efficiencies.
Additionally, the transaction will be cash flow accretive, freeing up working capital leading to improvement of the 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 ROCE, optimizing the use of capital to generate higher and long-lasting 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 recognized 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. This divestiture reinforces our commitment to creating value for our stakeholders by delivering strong financial performance, operational excellence, and exceptional service to our clients."
