Patanjali buys majority stake in Magma General Insurance for Rs 4,500 cr

Adar Poonawalla-owned Sanoti Properties on Thursday announced stake sale of its subsidiary Magma General Insurance to Patanjali Ayurved (PAL) and DS group for Rs 4,500 crore, subject to regulatory approvals.

 

Magma General Insurance, with presence across motor, health, property, and other commercial lines, reported a gross written premium (GWP) of Rs 3,295 crore in 2023-24 (FY24) and expects to close at Rs 3,650 crore to Rs 3,700 crore in FY25. Sanoti Properties held 72.5 per cent stake in the insurer as of November 2024.

 

Sanoti is jointly held by Adar Poonawalla and Rising Sun Holdings Private Limited. Other selling entities include Celica Developers and Jaguar Advisory Services.

 

 

PAL, established in 2006, is a manufacturer and marketer of herbal and nature-based products, medicines, and other FMCG products.

 

Speaking on foraying into the insurance sector, a PAL spokesperson said: “The sector is undergoing exciting regulatory reforms, with 100 per cent foreign direct investment (FDI) opening up. Structurally, general insurance in India is significantly underpenetrated vis-a-vis developed countries, and Irdai’s vision of insurance-for-all by 2047 could go a long way in plugging the gap.”

 

The spokesperson added: “Magma General Insurance could benefit immensely from our ability to infuse growth capital, huge distribution strength, including access to rural markets as Patanjali Ayurved products are available at 200,000 counters, national-level chains, including Reliance Retail, Hyper City and Star Bazaar, and 250 Patanjali Mega Stores."

 

Ambit Pvt Ltd acted as exclusive financial advisor, and Khaitan & Co and Wadia Gandhy & Co acted as legal advisors to selling shareholders. 

How Magma benefits

  Opportunity for growth capital infusion

  Access to Patanjali's huge distribution strength 

  Entrance into rural markets via Patanjali's 200,000 counters