I need a formula for the below question:

johnshaji

New Member
Joined
Nov 2, 2024
Messages
3
Office Version
  1. 365
Platform
  1. Windows
A private limited Company has 3 share holders , total Capital is 10 M , 1st Party 6 M , 2nd party 2 Mn, 3rd party 2 Mn.
The 1st party decides to bring in 5 M additional capital , This will increase share holding %age to 73% . However 2nd and 3rd party do not wish you dilute their share holding %age , Hence they would also bring additional capital . But how much is the capital required? please note while after all parties brings in their new capital , the each party will have the same % as earlier 1st Party - 60%, 2n Party - 20%, 3rd Party - 20% , Can someone provide me the excel formula for this
 

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Hello, this is more a math question than formula question - as those additional 5M represent 60%, 100% is equal to 5/0.6. If you multiply the result by original shares and add those to original capital you will have the result, i.e. 5/0.6 * 0.6 / 0.2 / 0.2 + 6 / 2 / 2.
 
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party 1 increases his investment from 6 to 11 million. Six divided by 11 gives 45,45% increase in number one’s investment.

The other parties would have to thus increase their investment by 45,45% as well. So from 2 million to 2.909.090 each for an additional investment of 909.090 each.
 
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Hello, this is more a math question than formula question - as those additional 5M represent 60%, 100% is equal to 5/0.6. If you multiply the result by original shares and add those to original capital you will have the result, i.e. 5/0.6 * 0.6 / 0.2 / 0.2 + 6 / 2 / 2.
Thanks Sofia, solving it in mathematical way , although I had the end result in , i was put it in the excel formulas, which wasn't working in this case the total would be 18.33 M , let me know any other excel formula you can think of solving this :) , this is for my academics
 
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party 1 increases his investment from 6 to 11 million. Six divided by 11 gives 45,45% increase in number one’s investment.

The other parties would have to thus increase their investment by 45,45% as well. So from 2 million to 2.909.090 each for an additional investment of 909.090 each.
additional investment is 1.66 M
 
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If A2:A4 is original capital (6 - 2 - 2) and B2:B4 is additional investment (5 - 0 - 0), then:

Excel Formula:
=SUM(B2:B4/(A2:A4/SUM(A2:A4)))*A2:A4/SUM(A2:A4)
 
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If:
cap1 =6.000.000
cap2 = 2.000.000
cap3 = 2.000.000
cap1B = 5.000.000 (added from capital 1)

Should be
=(cap1+cap1B)+(cap1+cap1B)/(cap1/(cap1+cap2+cap3)*(cap2+cap3)/(cap1+cap2+cap3)
shortern:

Code:
=(cap1+cap1B)*(1+(cap2+cap3)/cap1)
=(6000000+5000000)*(1+(2000000+2000000)/6000000)
=18,333,333
 
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