India's Bajaj Housing Finance approves IPO to raise 40 billion rupees

People watch results for India's general elections on a screen outside the Bombay Stock Exchange (BSE) in Mumbai

BENGALURU (Reuters) - India's Bajaj Housing Finance approved to file for an initial public offering (IPO) with a fresh issue of shares worth 40 billion rupees ($479.2 million) on Thursday.

The firm, a unit of non-banking finance company (NBFC) Bajaj Finance, said the IPO would include a sale of shares by existing shareholders.

In September 2022, the Reserve Bank of India (RBI) had released a list of upper-layer NBFCs, or those entities with 500 billion rupees of assets under management.

According to RBI norms, Bajaj Housing Finance, which was a part of the list, was required to be listed on stock exchanges by September 2025.

The IPO would be subject to market conditions, approvals and regulatory clearances, the company added.

($1 = 83.4812 Indian rupees)

(Reporting by Indranil Sarkar in Bengaluru; Editing by Sonia Cheema)