Vodafone Idea Stock Grabs Attention as SEBI Seeks Clarification on Elon Musk Partnership Rumors

Market observers and investors are closely monitoring Vodafone Idea shares following the Securities and Exchange Board of India (SEBI) seeking clarification from the telecom company regarding media reports suggesting a potential tie-up with Elon Musk’s Starlink. According to the reports, the Government of India (GoI) might sell its 33% stake in Vodafone Idea to tech giant Elon Musk and his satellite internet venture Starlink.

SEBI raised queries about the news report on January 1, 2024, and as of now, Vodafone Idea’s response to SEBI’s inquiry is pending.

Vodafone Idea, in a communication to Indian stock market bourses, stated, “The Exchange has sought clarification from Vodafone Idea Ltd on January 1, 2024, with reference to news …. dated January 1, 2024 quoting ‘Elon’s Starlink Tie-Up Talks In Market Pumps Vodafone Idea To The Skies In India.'”

Last week, Vodafone Idea shares experienced a significant surge after reports circulated about Elon Musk’s visit to Gujarat on January 10, 2024, for potential discussions with Vodafone Idea. The news indicated that Elon Musk’s Starlink is seeking a spectrum partner in India for its space-linked broadband business. This led to substantial buying in Vodafone Idea shares on Friday, and the momentum continued into Monday’s session. On Monday, Vodafone Idea’s share price reached a 52-week high of ₹18.40 on the NSE, marking a remarkable 38% rally in the last two trading sessions.

The surge in Vodafone Idea shares was driven by market speculation that both Elon Musk’s Starlink and Amazon are in need of a spectrum partner in India, with Vodafone Idea being considered as a potential candidate. Amazon’s Project Kuiper aims to enter the Indian broadband market and would require a spectrum partner, making Vodafone Idea an appealing choice for investors on Dalal Street.

In India, Amazon’s Project Kuiper will face competition from Elon Musk-owned Starlink, Bharti-backed Oneweb, and Reliance Industries’ Jio Satellite. While Bharti and Jio have their satellite platforms, Vodafone Idea remains open to potential collaborations with Elon Musk or Amazon.

Investors and industry analysts are closely watching the developments surrounding Vodafone Idea and its potential partnerships, with the stock’s recent rally driven by optimism about its role as a spectrum partner for major global players in the satellite broadband space.