Additional Paid-In Capital is the amount received from shareholders above the face value of shares issued by a company.

Simple Meaning:

It is the extra money investors pay over the nominal (face) value of shares.

Formula:

APIC = Issue Price – Face Value

Example:

If the face value of a share is ₹10 and it is issued at ₹25:

₹10 → Share Capital

₹15 → Additional Paid-In Capital

Where It Appears:

It is shown under Shareholders’ Equity in the balance sheet.

In short, additional paid-in capital represents the premium received on issuing shares.