Patanjali, DS Group buy Magma Insurance at Rs 4,500 crore valuation – The Times of India

MUMBAI: The board of Magma General Insurance has approved a share purchase agreement under which Patanjali Ayurved and several foundations will acquire a controlling stake in the company. The agreement, finalised on March 12, involves the transfer of equity shares from existing shareholders, including Sanoti Properties LLP, Celica Developers, and Jaguar Advisory Services, which are part of the Adar Poonawalla Group.
Patanjali Ayurved will buy the insurer along with DS Group, at a valuation of Rs 4,500 crore, subject to regulatory approvals.
Patanjali Ayurved led by Baba Ramdev, is one of the leading manufacturers and marketers of herbal, nature-based products, medicines and other FMCG products.
The Dharampal Satyapal Group (DS Group), established in 1929, is a prominent Indian conglomerate with a diversified presence across multiple sectors, including food and beverages, confectionery, mouth fresheners, hospitality, dairy, luxury retail, and agriculture.
This marks Patanjali Group’s first major move into the financial sector. The transaction is subject to approvals from Irdai, the Competition Commission of India, the company’s debenture holders, and other regulators. Once completed, the buyers plan to inject additional capital to expand the company’s operations.
Sanoti Properties LLP, jointly held by Adar Poonawalla (90%) and Rising Sun Holdings (10%), currently owns 72.5% of the company. In 2021, Poonawalla, through Rising Sun Holdings, acquired a 60% stake in Magma Fincorp, an NBFC that had a joint venture with German insurer HDI Global SE in Magma HDI General Insurance.
Speaking on the occasion, Adar Poonawalla said, “Magma General Insurance has built up its business carefully, both on the retail and corporate side, with over 18,000 agents, more than 2,000 corporates, 14 OEMs including all the large OEMs, and more than 80 players in the financial services business. It has delivered a growth rate of 26% over the last 5 years. We are confident that it will continue to make a strong contribution to the general insurance industry, under the new ownership of Patanjali Ayurved and the DS Group.”