He is survived by his daughter Sanjana, and sons Kunal and Karan.
At the meet inside the theatre, they had a picture of Shashi around which people lit candles and behind the photo was a montage on screen playing his popular scenes.
Shashi Kapoor died after prolonged illness on Monday at Mumbai's Kokilaben Ambani Hospital. Attending his prayer meet were a number of actors from the Bollywood industry of the likes of Rani Mukherjee, Naseeruddin Shah, Ratna Pathak Shah, Randhir Kapoor, Jeetendra, Rakesh Roshan, Karisma Kapoor, Hema Malini, Rekha, Kiran Rao, and more. He had kidney problem since several years.
His English-language movies included The Householder' in 1963, Shakespeare Wallah in 1965, Bombay Talkie in 1970 and Heat and Dust, in which he co-starred with his wife, British actress Jennifer Kendal, in 1982.More news: 'Neech' remark row: Congress suspends Mani Shankar Aiyar
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A prayer meet in the memory of late legendary actor Shashi Kapoor was held on Thursday at the Prithvi Theatre in Mumbai.
He was a member of the Kapoor dynasty, which has dominated the Hindi film industry for decades.
Born on March 18, 1938, to the illustrious and formidable theatre and film actor Prithviraj Kapoor, Shashi Kapoor hit the spotlight at the age of four, acting in plays directed and produced by his father.
"Peshawarites have great love and respect for the Kapoor family and Bollywood actors belonging to the ancient city", CHC secretary Shakeel Waheedullah told Press Trust of India. He was wrapped in the tricolour and given a three-gun salute by the police for his last rites at the Santacruz Hindu Crematorium.