Patanjali Ayurved and Dharampal Satyapal Group have received approval from the insurance regulator IRDAI to acquire a stake in Magma General Insurance. The company informed this in a stock exchange filing on Wednesday.
According to media reports, the deal is worth approximately ₹4,500 crore. The regulator gave the green light to this acquisition through a letter dated July 28, 2026. This approval will be valid for the next 3 months from the date of issue of the letter.
Patanjali to acquire 73.6% stake
Under this deal, Patanjali Ayurved will acquire a 73.6% stake, while Dharampal Satyapal Group will own a 24.5% stake. Previously, Sanoti Properties (Adar Poonawalla Group) was the largest stakeholder in this company. After receiving IRDAI’s approval, Patanjali will now become the promoter company of Magma General Insurance.
Share Purchase Agreement signed in March 2025
This deal began in March 2025, when a Share Purchase Agreement (SPA) was signed between Patanjali-Aled Buyer Group and the existing shareholders. The company informed the exchanges about this on March 12, 2025. Subsequently, due to delays in the regulatory review process, the long-stop date (deadline) of the agreement was extended on March 12, 2026.
Magma General Insurance Company is a general insurance company in India. It sells various insurance covers including health, motor, and fire insurance.
Regulatory approval stuck for over 1 year
Since the agreement was signed, this deal had been stuck under regulatory review for almost 16 months. After receiving the green light from IRDAI, the path for change of ownership has now become clear. The buyer group will now have to complete the share transfer and fulfill the conditions laid down by IRDAI within the stipulated period of the next three months.
Ownership will change in Magma General Insurance
After all necessary formalities, legal processes, and contract-related conditions are fulfilled, the ownership transfer of Magma General Insurance will be completed. With this, the presence of Baba Ramdev and Acharya Balkrishna’s Patanjali Group in the insurance sector will become even stronger.
