Vodafone Idea (Vi) on Tuesday said it is not engaged in any discussion with Elon Musk’s Starlink for a tie-up and is “not aware” of reports that claimed that such an alliance was in the works.

Responding to a clarification sought from the exchanges, the telco said it will comply with Sebi listing regulations and keep the stock exchanges informed of all the price-sensitive information.

The Vi stock has run up over the last few months on expectations of fund infusion by its promoters and an external investor. Lenders to the company have also indicated that they may also be willing to provide more finance if these funds come in.

Vi’s denial led to the stock declining by 5.65 per cent to Rs 16.03 on the BSE on Tuesday.

Speculation was also rife that the government could sell its 33.1 per cent stake in Vi to Musk to enable Starlink to foray into the Indian market.