According to market experts, there are many factors why the IPO is receiving a lukewarm response. Most analysts believe that valuation-wise, the issue is fully priced and leaves no room for investors to make money from listing. At the upper price band of Rs 1,960, HMIL is available at a premium valuation of 26.7x P/E ratio based on FY25E post-issue annualised earnings per share (EPS). The street is also not excited given the entire issue is an offer for sale (OFS), meaning Hyundai Motor India will not receive any funds from the IPO. Analysts also stated that since the promoter – Hyundai Motor Company- is offering a 17.5% stake in the issue, an additional 7.5% stake sale is anticipated within three years to meet regulatory requirements. This may create selling pressure in future. Most analysts have given a 'subscribe for long term' rating to the IPO and expect no major listing gains. Few brokerages have also advised investors to avoid the mega IPO.