Telecom operator Vodafone Idea on Tuesday denied any reports of a tie-up with Elon Musk’s Starlink. The telecom firm said that it is not in any discussion with Starlink regarding a tie-up and is not aware of the basis of these reports that are claiming such an alliance.
In a filing to the BSE, Vodafone Idea (VIL), stated that it will adhere to the listing regulations of SEBI and ensure that the stock exchanges are kept informed of all the price-sensitive information, reported PTI. Regarding the reports about the firm being in talks with Starlink, VIL said, “We are not aware of the basis of the said news item. In this regard, we would like to submit that the company is not in any such discussion with the named party.”
There were heavy speculations regarding the deal in the market, and some reports even claimed that the government could sell its 33.1 per cent stake in the telecom company to Elon Musk to allow Starlink to enter the Indian market.
The Securities and Exchange Board of India (SEBI) intervened on Monday, January 1, 2024, seeking a clarification from the company, leading to anticipation among the investors regarding Vodafone Idea’s response. Acknowledging the SEBI’s request for clarification, the telecom operator said, “The Exchange has sought clarification from Vodafone Idea Ltd on January 1, 2024, with reference to news...dated January 1, 2024, quoting 'Elon's Starlink Tie-Up Talks In Market Pumps Vodafone Idea To The Skies In India'.”
In the last few days, the VIL shares have surged on the anticipation of this partnership, specially as Musk is set to visit India to attend the Vibrant Gujarat Business Summit next week. However, after the clarifications, the VIL shares dropped 5.65 per cent on the BSE.