Awfis Space rises after inking agreement to sell Awfis care for Rs 27 crore

Awfis Space Solutions added 2.11% to Rs 771.35 after the company has entered into a business transfer agreement (BTA) with SMS integrated facility services for selling facility management business, Awfis Care for Rs 27.5 crore on a slump sale.

SMS Integrated Facility Services (SMS IFS), a Samara Capital company, is one of India's leading pan-India integrated facilities management firms. It provides a wide range of integrated facilities management services, including soft services, technical and managed services, and sustainability consulting.

Awfis said that it 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 its 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. The company also anticipates a positive impact on its ROCE, optimizing the use of capital to generate higher and long-lasting returns for its shareholders.

The business transfer agreement is expected to be completed in 120 days.

Amit Ramani, MD 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."

Awfis Space Solutions is a leading provider of flexible workspaces in India. They offer a variety of workspace solutions, including coworking spaces, customized managed offices, and mobility solutions. Awfis also provides design and build services through Awfis Transform and facility management services through Awfis Care. Their integrated platform strategy aims to address the modern workspace needs of businesses and professionals.

The company reported consolidated net profit of Rs 2.79 crore in Q1 FY25 as compared with net loss of Rs 8.31 crore posted in corresponding quarter last year. Revenue from operations jumped 37.3% to Rs 257.74 crore in Q1 FY25 as compared with Rs 187.70 crore in Q1 FY24.

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