Baba Ramdev’s Patanjali to enter insurance sector; IRDAI clears the way
IRDAI greenlights Patanjali Ayurved’s and DS Group’s acquisition of Magma General Insurance as part of a Rs 4,500 crore deal
After successful stints in Ayurvedic medicines, packaged foods, personal care items, and cosmetics, Baba Ramdev’s Patanjali Ayurved is reportedly mulling a foray into the insurance sector.
According to reports, the Insurance Regulatory and Development Authority of India (IRDAI) has greenlighted the process by approving Patanjali Ayurved’s and DS Group’s acquisition of Magma General Insurance.
Also read: India has 576 billionaires earning Rs 100 cr-plus a year; 300 pc rise in 5 yrs: Govt
What's the deal?
The entire acquisition is valued at Rs 4,500 crore. Together, Patanjali and DS Group, known for its food and confectionery business, will own 98 per cent of the stake. Patanjali will be a 73.56 per cent stakeholder in Magma General Insurance while 24.5 per cent will be owned by DS Group. The stakes are being bought from Sanoti Properties Limited, part of the Adar Poonawalla Group, and other shareholders including Celica Developers and Jaguar Advisory Services.
Approval valid for three months
The acquisition was revealed by the company in a stock exchange filing. It said the insurance regulator, through a letter dated July 28, 2026, approved the proposed acquisition of shares by Patanjali Ayurved Ltd, SR Foundation, RITI Foundation, RR Foundation, Suruchi Foundation and Swati Foundation from the existing shareholders.
Also read: Insurance mistakes most Indians make: Expert reveals what you need to know
According to reports, the approval was granted under Section 6A of the Insurance Act, 1938, read with IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024, and other regulations.
The approval will be valid for three months from the date of the IRDAI communication.
What next?
The deal doesn’t mean Patanjali will start selling insurance products right away. In layman’s terms, the company has acquired a successful and existing insurer instead of applying for a fresh insurance licence. The IRDAI’s approval paves the way for it to become the promoter of Magma General Insurance and infuse capital to support the company’s growth and solvency.
Magma’s record
Magma General Insurance currently offers over 70 insurance products across segments including health, vehicle, property, etc.
An Economic Times report quoting CareEdge Ratings said the company showed promising growth in recent years. Its gross direct premium rose at a compound annual growth rate (CAGR) of 22 per cent between FY21 and FY25, much above the general insurance industry’s CAGR of 10 per cent.
Also read: Filing income-tax returns? Check for unclaimed TCS refund before July 31
The company also raked in a net profit of 1 crore in FY25 compared with a loss of Rs 141 crore in FY21.
Similarly, its solvency ratio was 1.81 times as of December 31, 2025, much above the regulatory requirement of 1.50 times. This has translated into an excess capital of Rs 268 crore.