Patanjali Ayurved secures IRDAI approval to acquire majority stake in Magma General Insurance
The Insurance Regulatory and Development Authority of India cleared Patanjali Ayurved's purchase of 73.6% of Magma General Insurance, marking the company's entry into financial services.
The Insurance Regulatory and Development Authority of India granted its last required clearance on July 28 for Patanjali Ayurved to acquire a controlling 73.6% stake in Magma General Insurance, with the Dharampal Satyapal Group acquiring an additional 24.5% as co-investor. The transaction involves buying shares from Sanoti Properties, the Adar Poonawalla-owned holder of 72.4% of Magma, along with Celica Developers and Jaguar Advisory Services.
Under the regulator's terms, Patanjali will become the insurer's promoter and will keep injecting capital to meet solvency requirements. Magma has posted strong premium growth, reaching a gross direct premium of Rs 3,334 crore in FY25 and achieving breakeven in FY25 with a modest profit. Its solvency margin stood at 1.81 times at the end of 2025, above the 1.50-times threshold, providing excess capital of Rs 268 crore.
Why it matters
The deal expands Patanjali's brand into insurance, reshaping India's consumer-goods and financial-services landscape.
In this story