Muted response to Swiggy IPO, only ‘high-risk investors’ can subscribe for long term
The IPO received bids for about 1.8 crore shares against around 16 crore shares on offer, according to the NSE data.
Zomato addressed the claims of the antitrust investigation by the Competition Commission of India (CCI) into its business practices, and called them “misleading”. In a statement to the BSE, it clarified that while the CCI had initiated a preliminary inquiry back in April 2022, no final findings or orders had been issued against the company.
Reaffirming its commitment to compliance with Indian competition laws, Zomato emphasised its readiness to cooperate with the investigation and respond to any inquiries from the regulator. There were media reports surfacing suggesting that Zomato and Swiggy had violated antitrust regulations.
Issuing a firm denial, Zomato said an investigation initiated by an initial CCI order on April 4, 2022, had yet to yield any formal conclusions or negative findings against it. This information, disclosed in Swia BSE notice, highlighted that the CCI had issued no further directives since the inquiry commenced.
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In its filing, Zomato’s Company Secretary and Compliance Officer, Sandhya Sethia, provided additional context, explaining that the April 2022 ‘Prima Facie Order’ resulted in an investigation under the CCI’s Director General. Sethia stated that the CCI had initially raised concerns, particularly over Zomato’s platform practices, including listing preferences for restaurant partners and pricing parity across platforms.
Swiggy also called the media report misleading. It stated that, based on the CCI’s order dated April 5, 2022, the director general investigated specific aspects of its business conduct, and the inquiry and report of March 2024 represent only a preliminary step in an ongoing investigation, not a final decision, as some reports suggest. It clarified that it has disclosed all relevant details in the company’s public DRHP filing on September 26, 2024.
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