Ericsson India on Tuesday sold a 0.6% stake in Vodafone Idea (Vi) via a bulk deal worth Rs 428.43 crore. The company offloaded 63.37 crore shares in Vi at Rs 6.76 apiece. However, the details of the buyers have not been disclosed yet. This marks the second such transaction in recent weeks as in April, Nokia Solutions and Networks India Pvt Ltd had sold its 0.95% stake in Vi through a similar bulk deal. The Finnish-based telecom gear maker raised Rs 785.67 crore by selling 102.7 crore shares at Rs 7.65 each to marquee global investment banks, including Goldman Sachs, among others.
Earlier in 2024, Vodafone Idea had allotted 63.37 crore shares to Ericsson at Rs 14.80 per share and 102.7 crore shares to Nokia at the same price through a preferential issue, aimed at clearing outstanding vendor dues. As a result, Nokia and Ericsson acquired 1.47% and 0.9% stakes in Vi, respectively. The preferential issue was part of Vi’s plan to raise up to Rs 2,458 crore from its vendors to partially settle pending obligations.
Recently, the government recently converted Rs 36,950 crore of Vodafone Idea’s outstanding spectrum dues into equity, increasing its stake in the telco from 22.6% to 49%.
On the financial front, Vodafone Idea narrowed its net loss for the March quarter (Q4FY25) to Rs 7,166.1 crore. Revenue for the quarter rose 3.8% year-on-year to Rs 11,013.5 crore. The average revenue per user (ARPU), a key metric for telecom companies, stood at Rs. 175, up from Rs. 153 in Q4FY24 — a year-on-year growth of 14.2%, driven by tariff hikes and customer upgrades. The company’s board has approved a fundraising plan of up to Rs 20,000 crore, subject to shareholder and regulatory approvals.
As of now, Vi’s outstanding debt from banks, including accrued interest not yet due, stands at Rs 2,345.1 crore. Additionally, its deferred payment obligations — including spectrum payments payable through FY2044 and adjusted gross revenue (AGR) dues payable through FY2031 — total Rs 1,94,910.6 crore.