I strongly think premium for a new IPO should not be more than 20% of face value. Companies with the help of merchant bankers tries to cheat the Investmer by valuing comapny's worth and market value by inflating the price of particular script, which is not justified. SEBI and other regulatory authority should play a major role in deciding a premium on any IPO. SEBI should weigh Investors' interest rather than a Companies' interest.