“On the other hand those retail investors, who do not have much ideas of the business of company and bid mostly on last day after looking at the number of times stocks is oversubscribed, might be discouraged. If a stock gets oversubscribed 10 times in retail segment then even after bidding for 1 lakh (maximum limit for retail investor), one is expected to get shares worth 10,000 Rs. With an upper cap in price on listing day to 25% this investor can not expect more than 2500 Rs return, that is effectively on his 1 lakh investment (as the amount of unallocated shares comes back only a few days before listing). Thus a 2.5% (2,500 of 100,000) return on 20 days (average time from the day of bidding closure to listing day) even in bullish market condition while investment in secondary market could easily fetch 10-15% return . ”