Patanjali Ayurved, which is known for its herbal and other fast-moving consumer goods, is now set to enter financial services through a nearly Rs 4,500 crore acquisition.The Insurance Regulatory and Development Authority of India (Irdai) has approved the acquisition of Magma General Insurance by Patanjali Ayurved and Dharampal Satyapal Group, The Economic Times reported.The approval, received on July 28, was the final key regulatory clearance for the transaction announced in March.
Who will own Magma General Insurance?
Patanjali will acquire a 73.6% stake in Magma. Dharampal Satyapal Group, better known as DS Group and the maker of Rajnigandha pan masala, will acquire 24.5% and join the acquiring consortium as a co-investor, according to ET.The stakes will be acquired from Adar Poonawalla-owned Sanoti Properties and other selling shareholders, including Celica Developers and Jaguar Advisory Services. Sanoti held 72.4% in Magma before the transaction.Under the terms of Irdai’s approval, Patanjali will become the insurer’s promoter and continue to infuse capital to support its solvency and growth.
How has Magma performed?
Magma’s gross direct premium grew at a compound annual rate of 22% between FY21 and FY25 to Rs 3,334 crore, according to CareEdge Ratings data cited by ET. The general insurance industry recorded compound annual growth of 10% during the same period.The insurer reached breakeven in FY25, reporting a profit of Rs 1 crore against a loss of Rs 141 crore in FY24. It posted a net profit of Rs 27 crore in the first nine months of FY26.Its solvency margin stood at 1.81 times on December 31, 2025, above the regulatory threshold of 1.50 times. This translated into excess capital of Rs 268 crore.
