Vodafone-Idea Shares Fall After It Dismisses Reports Of Collaboration With Elon Musk’s Starlink
The share price of Vodafone Idea tumbled on Monday and touched an intraday low of Rs 15.95 apiece on NSE.
In a move to issue clarification around the telecom company’s possible tie-up with Elon Musk’s Starlink, Vodafone Idea came out and said that the two entities were not in any discussion. The telecom operator also added that it is “not aware" of the basis of reports claiming any such alliance and the possibility of a stake purchase. Following its clarification, the share price of the company tumbled and touched an intraday low of Rs 15.95 apiece on NSE. Reportedly, the company’s share witnessed a cut down of 5 per cent against its Monday close of Rs 17 per share.
In response to the clarification sought by the Securities and Exchange Board of India (SEBI), Vodafone Idea told Indian stock market exchanges, “This has reference to clarification sought about the news item ……. dated 29 December 2023 captioned “Elon’s Starlink Tie-Up Talks In Market Pumps Vodafone Idea To The Skies In India". In this regard, we would like to submit that the Company is not in any such discussion with the named party. We are not aware of the basis of the said news item. We wish to reiterate and clarify that the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price-sensitive information."
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It is pertinent to note that, last week, on Friday, Vodafone Idea shares witnessed a dramatic rise following the circulation of news reports that suggested Elon Musk’s visit to Gujarat on 10th January 2024 for a possible tie-up with Vodafone Idea.
Reports also suggested that Elon Musk is looking for a partner in India to expand its space-linked broadband business. This fuelled the speculations that he would be buying Vodafone Idea shares. On Monday, Vodafone Idea’s share price touched a 52-week high on the NSE as it reached Rs 18 per share. Given the rise in shares, SEBI sought a clarification from Vodafone Idea on Monday.
Notably, Musk is slated to visit India next week. He will be attending the Vibrant Gujarat Business Summit.
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