Patanjali’s Ayurved’s foray into the health insurance segment remains uncertain, with Irdai yet to approve its proposed acquisition of Magma General Insurance even a year after the deal was announced.
Sources attribute the delay in approval to regulator’s reservations regarding certain conditions of the ‘fit and proper’ criteria of incoming promoters. “The regulator typically takes a conservative view on promoter credentials, given the long-term nature of liabilities in insurance. Any ambiguity on capital backing or governance can delay approvals,” a person familiar with the matter said, requesting anonymity.
However, an official source at Sanoti Properties said the transaction remains well on track.
The Competition Commission of India cleared the proposal in April 2025.
Efforts to reach out to Patanjali Ayurved, DS Group, and Magma General Insurance did not elicit a response till the time of going to press.
Backdrop of the delay
The delay comes even as Irdai has recently cleared several new entrants and partnerships, including Kiwi General Insurance, backed by WestBridge Capital and former Tata AIG CEO Neelesh Garg. It also approved Allianz Jio Reinsurance, a 50:50 joint venture between Allianz Group and Jio Financial Services; and issued a certificate of registration to Valueattics Reinsurance, promoted by Oben Ventures and Fairfax-backed FAL Corporation.
In March 2025, Magma informed the stock exchanges that its board had approved the transfer of 98.06% equity held by existing promoters and investors to Patanjali Ayurved (73.56%) and DS Group (24.50%) through associated trusts, including SR Foundation, RITI Foundation, RR Foundation, Suruchi Foundation and Swati Foundation.
As of December 2025, Magma was 72.41% owned by Sanoti Properties LLP, which is held by Adar Poonawalla and Rising Sun Holdings in a 90:10 ratio. The Poonawalla Group infused about Rs 1,065 crore into the insurer over the past few years, gradually raising its stake. In November 2024, the company raised Rs 300 crore in equity capital, split equally between Sanoti and non-promoter entities, including family offices.
Magma General Insurance offers retail products such as motor, health and personal accident covers, along with commercial lines including property, fire, marine and liability. It reported gross direct premium income of Rs 3,308 crore and a market share of about 1.08% in the non-life segment during the first eleven months of FY26.
In its latest note, CareEdge Ratings flagged the proposed change in shareholding as a key monitorable, stating that any material shift, particularly if it weakens support from the Poonawalla Group or involves a weaker promoter profile, could trigger a rating downgrade. It added that the insurer currently derives strength from its association with the Poonawalla Group, including expectations of capital support until the transaction is completed or if it does not materialise.