Glossary Background

Equity Share Capital

Equity share capital refers to the total amount of money raised by a company through the issuance of shares. These shares can be classified as common or preferred, both of which contribute to the company's equity share capital. In general, share capital represents the funds raised by issuing shares to investors. Companies can increase their equity share capital by issuing additional shares through methods like a Follow-on Public Offer (FPO) or other financing options. This capital helps the company raise funds for expansion, operations, or debt repayment while offering ownership stakes to shareholders.