Patanjali and DS Group to Acquire Stake in Magma General Insurance

India’s Patanjali Ayurved and the Dharampal Satyapal Group (DS Group) have agreed to acquire a controlling stake in Magma General Insurance for approximately Rs45 billion ($517.5 million).

A share purchase agreement (SPA) has been approved for this transaction, which is now awaiting regulatory clearances.

The deal includes the transfer of equity shares from existing shareholders, including Adar Poonawalla-owned Sanoti Properties, Celica Developers, and Jaguar Advisory Services.

Magma General Insurance offers a portfolio of more than 70 insurance products catering to both retail and commercial clients, as reported by the Hindu Business Line.

Its retail insurance products include motor, health, personal accident, and home insurance.

The company’s commercial insurance products cover fire, engineering, liability, and marine insurance.

A Patanjali Ayurved spokesperson told the Hindu Business Line: “Magma General Insurance could benefit immensely from our ability to infuse growth capital, our vast distribution strength, including access to rural markets, as Patanjali Ayurved products are available at 200,000 counters, national-level chains such as Reliance Retail, Hyper City, Star Bazaar, and 250 Patanjali Mega Stores.”

The publication also quoted Adar Poonawalla as saying: “We are proud that over the last few years, Magma General Insurance has built up its business carefully, both on the retail and corporate side, with over 1,000 agents, more than 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 five 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.”

Recently, Magma General Insurance partnered with Hyundai India Insurance Broking to provide Magma’s motor insurance products across Hyundai’s dealer network in India.

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