Investing Basics – Feel free to ask the most basic questions

This company IPO’d in April 2022. The increase in reserves is due to the share premium earned via the issuance of new shares to the public markets.

Every share has a face value and a market value. When new shares are issued at market value, the face value component goes and sits in the share capital part of the balance sheet and the excess of market value over face value sits in the share premium account which is part of what you see as Reserves.

E.g. FV = 10, Market value = 100, assume 100 new shares issued at market price. Therefore 1000 (10100) will be added to the Share Capital part of B/S and 9000 (90100) will be added to reserves.

Google to understand more about Share Capital and reserves and read balance sheets in detail. Each element of share capital and reserves are broken down there.