Patanjali Ayurved is likely to make an entry into the insurance sector as the Insurance regulator, Insurance Regulatory and Development Authority of India
(IRDAI) has approved Patanjali Ayurved and the DS Group's acquisition of Magma General Insurance. IRDAI has cleared the final regulatory hurdle for the nearly Rs 4,500 crore deal, and it paves the way for Baba Ramdev-led Patanjali to formally enter the financial services space by becoming the promoter of the general insurer. In a stock exchange filing, the company said the insurance regulator, through a letter dated July 28, 2026, granted approval for the proposed acquisition of shares by Patanjali Ayurved Ltd, S.R. Foundation, RITI Foundation, RR Foundation, Suruchi Foundation and Swati Foundation from the existing shareholders. "IRDAI vide its letter dated July 28, 2026, has granted approval with respect to the proposed acquisition of shares along with the terms and conditions for the said acquisition," the company said. The approval has been granted under Section 6A of the Insurance Act, 1938, read with the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024, the Master Circular on the same subject, and other applicable regulations. The approval shall be valid for a period of three months from the date of the IRDAI communication. Approval coming after one year: The proposed acquisition was first announced on March 12, 2025. Patanjali informed exchanges about the execution of a Share Purchase Agreement (SPA) between the Patanjali-led buyer group and the existing shareholders, subject to regulatory approvals. Later on March 12, 2026, the company had disclosed an extension of the SPA's long-stop date. The buyer consortium is expected to move ahead with completing the share transfer and meeting the conditions specified in the approval letter within the stipulated three-month period.
