Ericsson India has sold nearly 0.9% stake in debt-laden telecom operator Vodafone Idea for approximately ₹428 crore via an open market transaction, according to bulk deal data published by the Bombay Stock Exchange (BSE).
The telecom equipment provider offloaded 63.37 crore shares of the Mumbai-based telco at an average price of ₹6.76 per share, bringing the total transaction value to ₹428.44 crore. The identities of the buyers were not disclosed by the exchange. Following the stake sale, Vodafone Idea’s stock fell 3.69%, closing at ₹6.78 per share on the BSE.
Background: Dues Settlement and Vendor Deals
In June 2023, Vodafone Idea had announced plans to issue equity worth ₹2,458 crore to vendors Nokia India and Ericsson India as part of a partial payment settlement for outstanding dues. The latest transaction appears to be part of this ongoing effort to resolve vendor obligations.
Financial Performance and Fundraising Plans
Last week, Vodafone Idea reported a narrowed quarterly loss of ₹7,166.1 crore for the March quarter (Q4 FY25), compared to ₹7,674.6 crore in the same period last year. The telco also posted a 3.8% year-on-year rise in revenue to ₹11,013.5 crore for the quarter.
The company’s Average Revenue Per User (ARPU)—a key performance metric—rose to ₹175 in Q4, up from ₹153 in Q4 FY24, marking a 14.2% increase, driven by tariff hikes and customer upgrades.
To bolster its financial position, Vodafone Idea’s board has approved a fundraising plan of up to ₹20,000 crore, pending shareholder and regulatory approvals.
Debt Profile and AGR Dues
As of March 2025, Vodafone Idea’s outstanding debt to banks (including accrued interest) stands at ₹2,345.1 crore. Its deferred spectrum and AGR dues, payable over the coming decades (until FY2044 for spectrum and FY2031 for AGR), total a staggering ₹1,94,910.6 crore.
Despite the Supreme Court’s recent rejection of Vodafone Idea’s plea for relief on Adjusted Gross Revenue (AGR) dues, the company stated that it remains engaged in discussions with the government to explore solutions based on its projected cash flows.
FY25 Summary
- Annual loss (FY25): ₹27,383.4 crore, down from ₹31,238.4 crore in FY24
- Annual revenue (FY25): ₹43,571.3 crore, up 2.1% year-on-year
