After its share prices took off over the last few market sessions, Vodafone Idea issued a clarification regarding the news reports claiming the telecommunications firm would soon partner with Elon Musk’s Starlink.
In a communique sent to the National Stock Exchange, Vodafone Idea said that they are not in talks to tie up with Elon Musk’s Starlink. After the notice, its share prices went down 5 percent.
This notice was sent in response to a query raised by the Bombay Stock Exchange on Monday, asking VI to issue a clarification regarding the same, reported Business World. Vodafone Idea stocks are currently listed on the BSE.
VI said in an official statement, “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.”
It further said that the firm will keep SEBI and stock market informed with all the price sensitive information.
Earlier, the BusinessWorld article had reported that the news of Elon Musk potentially buying a stake in Vodafone Idea to help Starlink enter India had left the country’s “markets betting”. However, Musk’s firm issued no statement in this regard.
After Vodafone Idea clarified that it has no intention of tying up with global internet provider Starlink, the shares of the company were down by five percent, trading at ₹16.20 as at 2 pm on Tuesday, January 2.
Vodafone Idea shares shoot up 30 percent
While the shares of the company are down on January 2, the Vodafone Idea stock saw a major boost during the last market session of 2023 and the first of 2024. VI shares jumped over 30 percent in the last two market sessions, closing at ₹17.75 on Monday.
Some media reports suggested that VI shares grew due to the rumours of tie up with Elon Musk’s company, but one of the primary reasons was VI paying ₹1700 crore to the Department of Telecommunications in September 2023, instilling shareholders’ faith in the company’s financial holdings.
Vodafone Idea’s top management said earlier that they are in talks to secure ₹2000 crore funding soon, but the deadline for the same ended on December 31, 2023, with no announcement regarding the finalising of the funding yet.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
