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 accredited on this regard, with the transaction awaiting regulatory clearances.
It consists of the switch of fairness shares from present 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 business shoppers, 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 business insurance coverage merchandise embody hearth, engineering, legal responsibility and marine insurance coverage.
A Patanjali Ayurved spokesperson advised the Hindu Enterprise Line: “Magma Basic Insurance coverage may benefit immensely from our means to infuse progress capital, big distribution power together with entry to rural markets as Patanjali Ayurved merchandise can be found at 2,00,000 counters, nationwide degree 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 few years, Magma Basic Insurance coverage has constructed up its enterprise rigorously, each on the retail and company aspect, with over 1,000 brokers, greater than 000 corporates, 14 OEMs together with all the massive OEMs, and greater than 80 gamers within the monetary companies enterprise. It has delivered a progress charge of 26% during the last 5 years. We’re assured that it’ll proceed to make a powerful contribution to the final insurance coverage trade, underneath the brand new possession of Patanjali Ayurved and the DS Group.”
Just lately, Magma Basic Insurance coverage partnered with Hyundai India Insurance coverage Broking to supply Magma’s motor insurance coverage merchandise throughout the latter’s supplier community in India.
