First round

# Shareholder Number of Price per share Aggregate Percentage

Shares Investment
1 Investor A 4,000 10 40000 40
2 Promoter 6,000 10 60000 60
Total 10,000 10 100000 100

Round 2 - (downround) - without anti dilution Investor B wants to acquire 50% for Rs 50000
# Shareholder Number of Price per share Aggregate Percentage
Shares Investment
1 Investor A 4,000 10 40000 20
1A No anti dilution protection
2 Investor B 10,000 5 50000 50
3 Promoter 6,000 10 60000 30
Total 20,000 10 150000 100

Round 2 - (downround) - With anti dilution - Adjustment 1

# Shareholder Number of Price per share Aggregate Percentage
Shares Investment
1 Investor A 4,000 10 40000 33.333333333
1A Anti dilution 4,000 5
2 Investor B 10,000 5 50000 41.666666667
3 Promoter 6,000 10 60000 25
Total 24,000 10 150000 100

Round 2 - (downround) - With anti dilution - Adjustment 1

# Shareholder Number of Price per share Aggregate Percentage
Shares Investment
1 Investor A 4,000 10 40000 28.571428571
1A Anti dilution 4,000 5
2 Investor B (after adj 2) 14,000 3.57142857143 50000 50
3 Promoter 6,000 10 60000 21.428571429
Total 28,000 10 150000 100

Process goes on with mutliple iterations (of issuing shares to both Investor A and Investor B) until (i) both investors have sa
# Shareholder Number of Price per share Aggregate Percentage
Shares Investment
1 Investor 1 (with Anti dilution 24010 1.66597251145 40000 40.001999267
2 Investor 2 30012 1.66600026656 50000 50.001666056
3 Promoter 6000 10 60000 9.9963346773
Total 60022 100

End While Investor A is issued additional shares, Promoter gets significantly diluted.
result:
i) both investors have same price per share and (ii) Investor B has 50%
First round
# Shareholder Number of Price per share Aggregate
Shares Investment
1 Investor A 4,000 10 40000
2 Promoter 6,000 10 60000
Total 10,000 10 100000

Round 2 - (downround) - without anti dilution - Investor 2 wants to acquire 50% for Rs 50000
1 Investor A 4,000 10 40000
1A WA Anti dil 1333 7.5
2 Investor 2 10000 5 50000
3 Promoter 6,000 10 60000
Total 21,333 10 213330

Iterate till Investor 2 is at 50%

# Shareholder Number of Price per share Aggregate
Shares Investment
1 Investor 1 (with WA Anti dilution 5818 6.87521485046408 40000
2 Investor 2 11818 4.23083432052801 50000
3 Promoter 6000 10
Total 23636
 CP2 = CP1*(A+B)/(A+C)
Percentage
CP2- New Price
40 CP1 = Old Price
60 A = number of shares outstanding prior to new issue
100 B = Agg consideration received by company for new issue, divided by CP1
C = number of shares issued in new transaction

24.998828107 CP1 10
A 10000
46.875732433 B 5000
28.12543946 C 10000
100 CP2 7.5

Percentage

24.61%
50.00%
25.39%
100.00%