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Vodafone Idea denies reports of acquisition

Shares of Vodafone Idea have given up all their gains and are trading with losses after the company denied that it is in talks with US companies like Verizon, Amazon or Starlink.

“We wish to submit that the said news item is incorrect. The company is not in any such discussion with any of the named parties,” the exchange filing said.

Newsreports had suggested that the company is in talks for a potential takeover with US-based telecom companies and Verizon, Amazon and Starlink are in the fray for the same.

After gaining for four weeks in a row, shares of Vodafone Idea are in the spotlight on Monday as well.

Besides the takeover buzz, the telecom operator informed the exchanges over the weekend that it had made the payment of Rs 1,701 crore, including interest, to the Department of Telecom (DoT) with regard to the 2022 spectrum auction instalment.

Last month, the company said it proposed to pay the instalment of nearly Rs 1,680 crore to the DoT by availing a grace period of 30 days with interest. The company has managed to do so within a 30-day time period.

During the company’s quarterly earnings update last month, it stated that it received a communication from a promoter group entity that in the event of any fund requirement for meeting its impending payment obligations, it will provide direct or indirect financial support to the extent of Rs 2,000 crore.

Vodafone Idea’s management during its earnings call also mentioned that the fundraising talks for the company have gathered pace in the recent past. However, no clarity has emerged on that front yet.

Prospects of spectrum dues repayment along with a potential fund raising have given a boost to shares of Vodafone Idea.

The stock ended 11.5 percent higher last week, lodging its fourth straight weekly advance. It had gained 5 percent in the week before last and 14 percent each in the two prior weeks. The last instance of the stock gaining for four weeks in a row was back in August and September 2021.

Shares of Vodafone Idea had ended 7.5 percent higher on Friday as well and have doubled from their 52-week low of Rs 5.7 that it fell to earlier in the year. CNBCTV18

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