Is Vodafone Idea tying up with Elon Musk's Starlink?
Cash-strapped telecom operator Vodafone Idea has revealed it is not in talks with Elon Musk's satellite internet company, Starlink. This statement comes after Vodafone Idea's stock saw over 30% gains in the previous two sessions due to rumors that Musk was considering buying a stake in the company to help Starlink enter the Indian market. The Bombay Stock Exchange (BSE) requested clarification from Vodafone Idea after a BusinessWorld report on the matter.
Company's response to market speculation
In response to the BSE's inquiry, Vodafone Idea said, "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," the telecom operator added. Following this clarification, Vodafone Idea's stock dropped about 5% on Tuesday afternoon, with nearly nine crore shares being traded. The stock had previously risen 21% on Friday and an additional 6% on Monday.
Rumors of Indian government selling stake to Musk
There have been rumors in recent months that the Indian government might sell its 33.1% stake in Vodafone Idea to Musk, allowing Starlink to enter the Indian market. If this were to happen, it could lead to a showdown between three billionaires: Musk, Reliance Jio's Mukesh Ambani, and Sunil Mittal of Bharti Airtel. However, these reports have not been confirmed.
Vodafone Idea's financial performance
In Q2, Vodafone Idea reported a consolidated net loss of Rs. 8,738 crore, while revenue from operations increased by a marginal 0.9% to Rs. 10,716 crore. The average revenue per user (ARPU) for the reporting quarter was Rs. 142, compared to Rs. 139 in the previous quarter, showing a sequential growth of 2.1%. At the time of writing, the stock was trading at Rs. 16.05, down 5.6%.
