Paid-Up Capital

Paid-up capital is the total amount of money that a company has actually received from shareholders in exchange for shares issued to them — representing the portion of authorised and issued share capital that shareholders have fully paid for. Paid-up capital equals the number of shares issued multiplied by the face value (or issue price, in the case of shares issued at a premium, where the premium portion goes to the share premium reserve). Paid-up capital is a fundamental component of a company's equity base, representing the permanent capital contributed by owners that forms the foundation of the company's financial structure. Under the Companies Act, 2013, every company must maintain a minimum paid-up capital as prescribed. For investors and analysts on Ventura Securities, paid-up capital is relevant for calculating earnings per share (EPS — profit divided by number of shares), book value per share, and assessing dilution risk when companies raise additional equity — rights issues, QIPs, or stock option exercises all increase paid-up capital and can dilute existing shareholders' ownership percentage.