Ericsson Sells Stake in Vodafone Idea Amid Ongoing Debt Crisis

Ericsson India has sold nearly a 1% stake in Vodafone Idea for Rs 428 crore, as part of an open market deal. Vodafone Idea is grappling with financial challenges, aiming to raise funds and manage its prospects amid ongoing spectrum payment obligations and a recent Supreme Court decision.

Ericsson India divested nearly a 1% stake in the financially beleaguered telecom company Vodafone Idea, netting Rs 428 crore through an open market transaction on Tuesday.

Despite this move, Vodafone Idea continues to grapple with its debt crisis, seeking to raise up to Rs 20,000 crore to improve its financial situation. The telco saw a marginal improvement in its fourth-quarter financials, with losses narrowing to Rs 7,166.1 crore and revenue rising by 3.8% year-on-year to Rs 11,013.5 crore.

The Supreme Court's recent dismissal of Vodafone Idea's plea concerning AGR dues has further complicated matters, although the company remains hopeful for a solution in collaboration with the government. The telco faces substantial outstanding debt obligations, including deferred payments towards spectrum and AGR dues, stretching well into the next decade.

(With inputs from agencies.)