A retail investor can bid more than Rs 1 Lakhs for an IPO if they apply in the 'Non-Institutional Investors' category. In the 'Non-Institutional Investors' category, there is no maximum bid amount.
You can apply for more than Rs 1 Lakhs, and you may be eligible for a better allocation than a retail bidder.
Book Build IPO's allocate 15% to non-institutional bidders. Retail Individual investors have 35%, and the remaining 50% to QIB's. Because the Non-institutional category is smaller, issues are often more oversubscribed than those in the retail category. This results in a lower shares allocation.