Sanoti Properties, owned by Adar Poonawalla, announced the sale of a stake in its subsidiary Magma General Insurance to Patanjali Ayurved (PAL) and the DS group for Rs 4,500 crore, subject to regulatory approval.
A gross written premium (GWP) of Rs 3,295 crore was reported by Magma General Insurance, which operates in the motor, health, property, and other commercial lines. The company anticipates closing at Rs 3,650 crore to Rs 3,700 crore in fiscal year 2025. As of November 2024, Sanoti Properties held a 72.5% stake in the insurer.
Sanoti is owned by Adar Poonawalla and Rising Sun Holdings Private Limited. Celica Developers and Jaguar Advisory Services are among the other selling entities.
PAL, founded in 2006, manufactures and markets herbal and nature-based products, medicines, and other fast-moving consumer goods (FMCG).
A representative for PAL talked about getting into the insurance industry, saying, "The industry is experiencing exciting regulatory reforms, with 100% foreign direct investment (FDI) opening up. Compared to developed nations, general insurance is structurally much less common in India; Irdai's goal of universal insurance by 2047 may help bridge the gap.
The press release continued, "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 200,000 counters, national-level chains, including Reliance Retail, Hyper City and Star Bazaar, and 250 Patanjali Mega Stores."
Ambit Pvt Ltd served as the exclusive financial advisor, while Khaitan & Co and Wadia Gandhy & Co advised the selling shareholders on legal matters.
