Patanjali Ayurved is set to enter India's general insurance market after the Insurance Regulatory and Development Authority of India (IRDAI) approved its acquisition of Magma General Insurance in a deal worth nearly Rs 4,500 crore.
The acquisition, undertaken jointly with the DS Group, will see Patanjali acquire a 73.56 per cent stake in Magma General Insurance, while the DS Group will hold 24.5 per cent. Together, they will control nearly 98 per cent of the insurer by purchasing shares from existing investors led by Sanoti Properties LLP of the Adar Poonawalla Group. The regulatory approval is valid for three months, within which the transaction must be completed.
The deal marks Baba Ramdev-led Patanjali’s first major entry into financial services. Known for its Ayurvedic medicines, FMCG products and packaged foods, the company has opted to acquire an established insurer instead of seeking a fresh insurance licence.
Magma General Insurance operates across motor, health, property and commercial insurance. The company reported gross written premiums of Rs 3,615.48 crore in FY26, up from Rs 3,334.4 crore a year earlier.
Industry experts believe Patanjali could use its extensive retail network, particularly in rural and semi-urban markets, to widen insurance penetration. The acquisition also highlights the growing trend of Indian business groups entering financial services through strategic acquisitions rather than building new ventures from the ground up.