Vodafone’s Stake Sell to Musk Sparks SEBI Inquiry: Shares Surge 23% with News of Starlink Acquisition
SEBI Seeks Clarity from Vodafone-Idea on Elon Musk’s Starlink Project
The Securities and Exchange Board of India (SEBI) has sought clarification from Vodafone-Idea (VI) regarding potential collaborations with Elon Musk’s Starlink project. VI has filed documents with the exchange disclosing information about its dealings with Starlink. Media reports suggest that the government may allow VI to sell its 33% stake in Elon Musk’s satellite internet venture, Starlink, to American companies such as Verizon, Amazon, or Starlink itself. Elon Musk is expected to visit India on January 10.
VI’s shares have experienced a significant surge, rising by 23% in the last two trading days and reaching a 52-week high. Starting at INR 13.25 on December 28, the stock rose to INR 17 on January 1, and during Monday’s trading, it reached INR 18.42.
Reports in September 2023 hinted at Vodafone-Idea being considered for acquisition by American companies Verizon, Amazon, or Starlink. However, on September 18, the company denied these reports and rejected any kind of takeover offers from these companies.
Starlink provides high-speed internet through satellite connections, and its satellite dishes can quickly link remote areas to the internet. Starlink’s kit includes a router, power supply, cable, and mounting tripod. The Starlink app is available on both iOS and Android platforms, providing setup and monitoring for various aspects.
SEBI’s inquiry reflects regulatory scrutiny and the need for transparency in the evolving landscape of telecommunication collaborations, especially with global players like Starlink entering the market.
