Adar Poonawalla to sell Magma Insurance stake to Patanjali Ayurved, DS Group for Rs 4,500 crore

Patanjali Ayurved

Adar Poonawalla-owned Sanoti Properties has decided to sell its stake in its insurance subsidiary Magma General Insurance to Baba Ramdev's Patanjali Ayurved and other entities.

Post the sale, Baba Ramdev's Patanjali will control a 98 percent stake - valued at Rs 4,500 crore as per the transaction - in the insurance company. The Dharampal Satyapal Group (DS Group), with presence in food and beverages, dairy and hospitality, among others, is the other prominent buyer.

Adar Poonawalla holds 90 percent in Sanoti Properties, one of the entities selling Magma stake. As per the insurer's official website, Sanoti, along with Rising Sun Holdings (the holding company of the Cyrus Poonawalla Group), holds a 72.49 percent stake in the company as of November 2024.

The company’s board made this decision at its meeting held on March 12, 2025. The buyers in the transaction include Sanoti Properties LLP, Celica Developers Private Limited, Jaguar Advisory Services Private Limited, former HDFC chairman Keki Mistry, Atul DP Family Trust, Shahi Sterling Exports Private Limited, QRG Investments and Holdings Limited and others.

Patanjali Ayurved Limited, SR Foundation, RITI Foundation, RR Foundation, Suruchi Foundation and Swati Foundation make up the buyers in this transaction. “Buyers propose to acquire such number of equity shares… which will result in the Buyers holding approximately 98.055% (on a fully diluted basis) of the Company’s total issued and paid-up equity share capital,” the insurer’s BSE filing said.

Adar Poonawalla, Chairman, Serum Institute of India said the company had registered a growth rate of 26 percent 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," he said.

The acquisition will be subject to the consent and permission from the Insurance Regulatory and Development Authority of India (IRDAI), Competition Commission of India, Debenture Holders of the Company and other regulatory authorities, the company said in its BSE filing.