Vodafone Idea Denies Tie-Up Rumours With Elon Musk's StarLink, Shares Tank

Shares of Vodafone Idea which had been surging up in the past few days, crashed heavily on Tuesday afternoon, going down over 4%.

What Happened: The sharp decline came as the company in an exchange filing, clarified that it is not in any discussion with Elon Musk’s Starlink for a possible stake sale. Media reports had suggested the government may be offloading its 33% stake in the debt-ridden company to the American Billionaire.

See Also: Why LIC Shares Are Falling 1.6% Today As They Approach IPO Price

In reply to a notice from the exchanges, the telecom provider said “We would like to submit that the Company is not in any such discussion with the named party.” The statement also added that the company was not aware of the basis of the news report.

The stock jumped over 20% pursuant driven by the rumours even went on to hit a new 52-week high of ₹18.40 on the first day of 2024. The troubled telco has been struggling to keep up with the other two Indian telecom giants Airtel and Reliance Jio. The tie-up could have proved beneficial for both parties as StarLink might also need a spectrum partner in India for its space-linked broadband business.

Price Action: Vodafone Idea’s share price was down 5% to trade at ₹16.15 on Tuesday afternoon.

Read Next: Jio Inches Closer To Launch Satellite-Based Internet Services, Awaits Crucial IN-SPACe Nod