NSE/BSE Codes: NSE: AWFIS, BSE: 544181

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure pursuant to Regulation 30 of SEBI LODR Regulations regarding receipt of an adverse Final Award in arbitration proceedings.

Involved Parties / Authorities:

  • Respondent: Landlord/counterparty (name not disclosed)
  • Arbitral Tribunal: Justice S. Muralidhar (Retd.), Sole Arbitrator at The Delhi International Arbitration Centre (DIAC)
  • Regulatory Authorities: National Stock Exchange of India Limited (NSE), BSE Limited, Securities and Exchange Board of India (SEBI)

Date / Timeline of Event:

  • Date of Award: September 30, 2026
  • Date of Receipt by Company: October 01, 2026
  • Date of Disclosure to Exchanges: October 02, 2026
  • Regulatory Reference: SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026

Brief Description of Outcome / Dispute:

The dispute arose from the termination of a Lease Deed by Awfis Space Solutions Limited during the lock-in period for a property taken on lease for its operational requirements. The termination was due to certain infrastructural issues and safety issues relating to the leased premises. The disputes were referred to arbitration before a Sole Arbitrator at the Delhi International Arbitration Centre. The Final Award was passed in favor of the Respondent and against the Company.

Impact of Outcome:

Financial Impact:
  • The Arbitral Award determines an amount of approximately ₹8.26 crore against the company
  • This amount includes applicable interest and costs
  • The company had already written off fit-outs in its books related to this property
  • The total net incremental cost impact on the company is not anticipated to exceed ₹6.3 crore (including applicable interest) if the award is conclusively determined against the company
  • The financial impact would affect the company's Profit & Loss statement for the relevant financial period
Operational / Business / Strategic Impact:
  • The dispute relates to the company's core operational requirement of leased premises for its business
  • The termination was due to genuine safety and infrastructural concerns at the property
  • No material operational disruption is indicated beyond the financial implications
  • The outcome does not appear to affect the company's ongoing business operations or strategic direction
Other Implications:
  • The disclosure demonstrates compliance with SEBI LODR Regulations regarding material events
  • The company's evaluation of legal remedies indicates proactive management of legal risks
  • The matter involves reputational considerations regarding property management and lease compliance

Next Steps / Required Actions:

  • The company is evaluating available remedies to challenge the Award
  • Legal counsel is reviewing the award for discrepancies apparent on the face of the record
  • The company will take necessary actions in accordance with applicable law
  • Potential next steps may include filing a challenge petition in appropriate judicial forum
  • The company must comply with any final determination after exhausting legal remedies