India’s Patanjali Ayurved and the Dharampal Satyapal Group (DS Group) have agreed to acquire a controlling stake in Magma General Insurance for approximately Rs45bn ($517.5m).
A share purchase agreement (SPA) was approved in this regard, with the transaction awaiting regulatory clearances.
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It includes the transfer of equity shares from existing shareholders including Adar Poonawalla-owned Sanoti Properties, Celica Developers and Jaguar Advisory Services.
Magma General Insurance has a portfolio of more than 70 insurance products catering to both retail and commercial clients, stated the Hindu Business Line.
Its retail insurance products suite includes motor, health, personal accident and home insurance.
The company’s commercial insurance products encompass 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, huge distribution strength including access to rural markets as Patanjali Ayurved products are available at 2,00,000 counters, national level chains including 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 the latter’s dealer network in India.
