India’s Patanjali Ayurved and the Dharampal Satyapal Group (DS Group) have agreed to amass a controlling stake in Magma Basic Insurance coverage for about Rs45bn ($517.5m).
A share buy settlement (SPA) was permitted on this regard, with the transaction awaiting regulatory clearances.
It consists of the switch of fairness shares from current shareholders together with Adar Poonawalla-owned Sanoti Properties, Celica Builders and Jaguar Advisory Providers.
Magma Basic Insurance coverage has a portfolio of greater than 70 insurance coverage merchandise catering to each retail and industrial purchasers, said the Hindu Enterprise Line.
Its retail insurance coverage merchandise suite consists of motor, well being, private accident and residential insurance coverage.
The corporate’s industrial insurance coverage merchandise embody fireplace, engineering, legal responsibility and marine insurance coverage.
A Patanjali Ayurved spokesperson informed the Hindu Enterprise Line: “Magma Basic Insurance coverage may benefit immensely from our skill to infuse development capital, enormous distribution power together with entry to rural markets as Patanjali Ayurved merchandise can be found at 2,00,000 counters, nationwide stage chains together with Reliance Retail, Hyper Metropolis, Star Bazaar and 250 Patanjali Mega Shops.”
The publication additionally quoted Adar Poonawalla as saying: “We’re proud that over the previous couple of years, Magma Basic Insurance coverage has constructed up its enterprise fastidiously, each on the retail and company facet, with over 1,000 brokers, greater than 000 corporates, 14 OEMs together with all the big OEMs, and greater than 80 gamers within the monetary companies enterprise. It has delivered a development fee of 26% during the last 5 years. We’re assured that it’s going to proceed to make a powerful contribution to the overall insurance coverage business, beneath the brand new possession of Patanjali Ayurved and the DS Group.”
Lately, Magma Basic Insurance coverage partnered with Hyundai India Insurance coverage Broking to offer Magma’s motor insurance coverage merchandise throughout the latter’s vendor community in India.
