Shares of food delivery giant Zomato fell 3.22 percent to Rs 247 on Friday, following findings by India’s antitrust regulator Competition Commission of India (CCI) that the company, alongside rival Swiggy, engaged in practices t breached competition laws. The CCI findings, reported by Reuters, noted exclusivity arrangements favouring certain restaurants.

Meanwhile, Swiggy’s mega IPO, valued at Rs 11,327 crore, remains open for the last day of bidding. The IPO has finally secured full subscription by both retail and institutional investors, following two days of tepid bidding activity.

The IPO, open in a price range of Rs 371 to Rs 390 until 5 pm today, is expected to give Swiggy a valuation of approximately Rs 95,000 crore at the upper price band. Zomato stock has doubled in the last one year, taking the firm’s market capitalisation to Rs 2.15 lakh crore.

Market watchers tracking the grey market premium (GMP) activity noted that Swiggy shares are commanding a modest GMP of Rs 1-2, indicating flat listing. This marks a sharp decline from November 1, when the GMP was Rs 18, pointing to a potential gain of 4.62 percent at the time.

The CCI’s investigation found that Zomato entered into ‘exclusivity contracts’ with specific partners in return for reduced commissions, while Swiggy offered guaranteed business growth to certain restaurant chains that agreed to exclusive listing on its platform, according to the Reuters report.

CCI said that these practices limited market competitiveness by preventing other players from gaining a fair foothold. The investigation began in 2022 following complaints from the National Restaurant Association of India about anti-competitive practices by the platforms.

Swiggy’s IPO debut coincides with a period of caution in the broader market, as concerns over an urban demand slowdown and foreign investor outflows impact sentiment.

The next steps in the CCI case will involve a final review and decision, which could lead to penalties or mandated changes in business practices for both companies, said the report. Neither Zomato nor Swiggy provided comments on the CCI findings in the Reuters report.

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