The Insurance Regulatory and Development Authority of India (IRDAI) has approved the acquisition of Magma General Insurance by Patanjali Ayurved and Dharampal Satyapal Group for approximately Rs 4,500 crore. This is the last required regulatory approval for the deal announced in March, paving the way for Baba Ramdev’s Patanjali Ayurveda to enter the financial services sector. Patanjali, which manufactures and sells herbal and other FMCG products, will buy 73.6 per cent stake in the non-life insurance company, while DS Group, which makes Rajnigandha pan masala, will buy 24.5 per cent from shareholders like Adar Poonawala’s Sanoti Properties and Selka Developers and Jaguar Advisory Services. Before this deal, Sanoti had 72.4 percent stake in Magma.
How was the performance of Magma in last few years?
Under the terms of the approval received on July 28, Patanjali will become the promoter of the non-life insurance company and will continue to infuse capital to support the company’s solvency and growth. DS Group will join the acquiring consortium as a co-investor. CareEdge Ratings had said in March that Magma’s gross direct premium grew at a compound annual growth rate (CAGR) of 22 per cent to Rs 3,334 crore between FY2021 and FY2025, while the general insurance industry’s CAGR was 10 per cent.
The insurance company achieved break-even in FY 2025 and recorded a profit of Rs 1 crore, while it suffered a loss of Rs 141 crore in FY 2024. In the first 9 months of FY26, it reported a net profit of Rs 27 crore. Its solvency margin as on December 31, 2025 was 1.81x, which is more than the regulatory limit of 1.50x, which means it has excess capital of Rs 268 crore.
Patanjali will increase product portfolio
This company with more than 70 products in different categories provides insurance for safety against all major risks in the general insurance sector. Going forward, Patanjali is likely to expand the insurance company’s product portfolio and expand its reach across India, especially in underserved semi-urban and rural markets. Patanjali has a strong distribution network including access to rural markets. Its products are available at approximately two lakh counters across the country, which include national level chains like Reliance Retail, Hyper City, Star Bazaar and 250 Patanjali Mega Stores.
