Patanjali Ayurveda forays into insurance coverage sector, acquires majority stake in Magma Basic Insurance coverage, ETCFO
Yoga Guru Ramdev-led Patanjali Ayurved and Rajnigandha maker Dharampal Satyapal Group (DS Group) will purchase Magma Basic Insurance coverage from Sanoti Properties LLP at a valuation of Rs 4,500 crore, an organization assertion mentioned on Thursday. This is able to mark the entry of Patanjali Ayurved, a producer and marketer of natural, nature-based merchandise, medicines and different FMCG merchandise, into the overall insurance coverage enterprise following the regulatory approval.
Magma Basic Insurance coverage is majority-owned by Sanoti Properties LLP, an entity collectively held by Adar Poonawalla and Rising Solar Holdings Pvt Ltd.
Adar Poonawalla-owned Sanoti Properties has permitted the sale of its insurance coverage subsidiary Magma Basic Insurance coverage (erstwhile Magma HDI Basic Insurance coverage Firm), together with Celica Builders and Jaguar Advisory Providers, as per the share buy settlement with Patanjali Ayurved and DS Group, the assertion mentioned.
The deal is at a valuation of Rs 4,500 crore and is topic to regulatory approvals, it added.
The corporate’s board made this resolution at its assembly held on March 12, 2025.
Magma Basic Insurance coverage (erstwhile Magma HDI Basic Insurance coverage Firm Ltd), with over 70 merchandise throughout varied classes, affords insurance coverage to safe all main dangers within the common insurance coverage sphere.
The insurance coverage firm delivered a Gross Written Premium (GWP) of Rs 3,295 crore in FY24 and is anticipated to ship about Rs 3,650-3,700 crores of GWP in FY25 with a Revenue Earlier than Tax of Rs 20-25 crore.
“The sector is present process thrilling regulatory reforms with 100 per cent FDI opening up. Structurally common insurance coverage in India is considerably underpenetrated vis a vis developed international locations and IRDAI imaginative and prescient for insurance coverage for all by 2047 might go a great distance in plugging the hole,” Patanjali Ayurved spokesperson mentioned.
Magma Basic Insurance coverage may gain advantage immensely from our capability to infuse progress capital, big distribution energy together with entry to rural markets as Patanjali Ayurved merchandise can be found at 2,00,000 counters, nationwide degree chains together with Reliance Retail, Hyper Metropolis, Star Bazaar and 250 Patanjali Mega Shops, the spokesperson added.
Talking on the event, Adar Poonawalla Chairman, Serum Institute of India mentioned, “We’re proud that over the previous few years, Magma Basic Insurance coverage has constructed up its enterprise fastidiously, each on the retail and company facet, with over 18000 brokers, greater than 2000 corporates, 14 OEMs together with all the massive OEMs, and greater than 80 gamers within the monetary companies enterprise.
It has delivered a progress fee of 26 per cent during the last 5 years and can proceed to make a robust contribution to the overall insurance coverage trade, underneath the brand new possession of Patanjali Ayurved and the DS Group, he added.
Ambit Pvt. Ltd acted as unique monetary advisor & Khaitan & Co and Wadia Gandhy & Co acted as authorized advisors to promoting shareholders, it added.
