Voda Idea denies reports of talks with Musk's Starlink, shares slide
Vodafone Idea on Tuesday denied a media report of talks with Elon Musk-owned Starlink for a stake sale, sending the telecom operator's shares down by 5.65%.
The shares had hit a 52-week high intraday Monday, gaining nearly 40% in two trading sessions after the report emerged on the Starlink talks.
«In this regard, we would like to submit that the company is not in any such discussion with the named party,» the cash-strapped company said in a regulatory filing, adding: «We are not aware of the basis of the said news item.»
Vodafone Idea said it would keep stock exchanges informed about all price-sensitive information under the listing regulations.
On Tuesday, these shares rose to as high as ₹17.78 on the BSE before giving up the gains and closing at ₹16.03.
The previous day, they closed at ₹16.99, after hitting a 52-week high at ₹18.52.
On last Friday, when the media report emerged, Vodafone Idea shares had surged 21%.
The company, for the past three years, has been struggling to raise funds which are needed to pay its large vendors like Indus Towers and the government, expand 4G coverage and invest in 5G rollout to compete effectively with bigger rivals Reliance Jio and Bharti Airtel.
The loss-making company's cash and cash equivalents declined to ₹119.6 crore at the end of September from ₹250 crore three months earlier.
Chief executive Akshaya Moondra had earlier said that discussions with potential investors would close in the December quarter, followed by debt funding from banks.
