Awfis, a Provider of Flexible Workspaces, Has Decided to Sell off Its Facility Management Division

awfis

Nitin Konde, Apoorva Bajj

Sep 12, 2024 — 2 min read

Awfis, a Provider of Flexible Workspaces, Has Decided to Sell off Its Facility Management Division

The facility management division of Awfis Space Solutions Limited, which provides flexible workspaces, has been sold to SMS Integrated Facility Services Private Limited for a fee of INR 27.5 crore under a business transfer agreement. This deal, which Awfis has been working with exclusively through Maple Capital Advisors, is set to close in 120 days.

Samara Capital's SMS Integrated Facility Services (SMS IFS) Private Limited ranks high among the best-integrated facility management companies in India. Across Tier 1, Tier 2, and Tier 3 cities in India, it oversees more than 5,000 facilities for over 500 clients and employs over 21,000 people.

Sustainability advice, technical and managed services, and soft services are just a few of the many integrated facilities management offerings it makes available. For this deal, Awfis retained the services of Singhania & Co.

How Awfis Will Benefit From This Deal

While adhering to the highest standards of compliance and governance, Awfis will be able to reap the benefits of the experience of a specialised player such as SMS, which possesses specific strengths in the areas of people management, digital operations, and facility cost efficiency. The administrative overheads of Awfis will be reduced, compliance requirements will be reduced, and operational efficiencies will be improved as a result of this change.

The Deal Will Enhance the Working Capital of Awfis

The deal will build up working capital, which will contribute to an improvement in the working capital cycle. This will be a cash flow accretive transaction. The company will have more financial flexibility as a result of this improved liquidity, which will allow it to invest more dollars in growth and expansion.

Amit Ramani, Managing Director and Chairman of Awfis Space Solutions, stated that by forming a partnership with a specialist such as SMS, company will be able to effectively allocate its capital and management resources towards key priorities. These priorities include strengthening firm's position in the market for flexible workspaces, expanding its network, and driving innovation in customer experience and technology integration.

About Awfis

In terms of total centres, Awfis Space Solutions Ltd. ('Awfis') is the biggest provider of flexible workspace solutions in India (as of December 31, 2023). Startups, small and medium enterprises ("SMEs"), big organisations, and multinational corporations all rely on its flexible workspace solutions, which cover a range from individual desks to fully tailored office spaces. The seat groups that firm's flexible workplace solutions can accommodate vary greatly, from one to multiple seats, and its clients can contract them for periods ranging from an hour to several years. From Awfis' humble beginnings as a shared office space, it has grown into a comprehensive platform for office solutions.