Patanjali Ayurved, along with other investors, have bought out the stake of Senoti Properties, a joint venture between businessman Adar Poonawalla and Rising Sun Holdings. Senoti Properties held a 74.5 per cent stake in Magma General Insurance and would completely exit the company.The financial consideration of the deal has not been divulged yet.
Mumbai: Yoga Guru Ramdev-led Patanjali Ayurved , one of the major players in the country’s FMCG(fast moving consumer good) sector, and Rajnigandha maker Dharampal Satyapal Group (DS Group) have now ventured into Indian general insurance sector by picking up a majority stake in Magma General Insurance from a clutch of investors. according to a regulatory disclosures.
They will acquire Magma General Insurance at a valuation of Rs 4,500 crore from Sanoti Properties LLP, a company statement said on Thursday.
With 74.5 per cent stake Adar Poonawalla and Rising Sun Holdings Magma General Insurance jointly own Magma General Insurance .
Sanoti Properties has approved the sale of its insurance subsidiary Magma General Insurance (erstwhile Magma HDI General Insurance Company), along with Celica Developers and Jaguar Advisory Services, as per the share purchase agreement with Patanjali Ayurved and DS Group, the statement said.
The deal is “at a valuation of Rs 4,500 crore, subject to regulatory approvals”, it added.
Sanoti Properties held by Poonawalla and Rising Sun Holdings Private Limited in the ratio of 90 per cent :10 per cent.Over the last few years, Poonawalla Group has infused ₹1,065 crore thereby gradually increasing its stake to 72.5 per cent.
The details of financial transaction of the deal has not been divulged yet.
The others, who also sold their stakes are- Celica Developers, Jaguar Advisory Services, Keki Mistry, Atul DP Family Trust, Shahi Sterling Exports, and QRG Investments & Holdings.
The other investors, who along with Patanjali Ayurveda have bought stakes in Magma General Insurance are- SR Foundation, RITI Foundation, RR Foundation, Suruchi Foundation, and Swati Foundation.
Analysts have seen significant synergy between Patanjali Ayurveda and Magma General Insurance which is having a major focus on Tier-1 and Tier-2 the rural areas of the country.
Magma General Insurance, with over 70 products across various categories, offers insurance to secure all major risks in the general insurance sphere.