Tata Capital, a prominent player within the Tata Group, is gearing up for its debut on the stock market, marking yet another significant move within the conglomerate. Unlike Tata Sons, the holding company that's been under the spotlight for its impending listing, Tata Capital is poised to take center stage with its own IPO plans.

Recent reports suggest that Tata Capital is laying the groundwork for its IPO launch, indicating a strategic move to comply with RBI regulations mandating the listing of upper-tier NBFCs like Tata Sons and Tata Capital by September 2025. With Tata Sons holding around 95% of Tata Capital's equity, the IPO serves as a pivotal step towards fulfilling regulatory requirements.

The IPO timeline appears ambitious, aiming for a potential launch by the end of the year, provided all prerequisites are met. As part of its restructuring efforts, the Tata Group is also contemplating transferring some non-core assets to Tata Capital, further streamlining operations in preparation for the public offering.

Tata Capital's anticipated IPO follows closely on the heels of Tata Technologies' successful debut in the public market, which garnered significant investor interest. Reports indicate strong demand for Tata Capital shares in the unlisted market, with trading prices exceeding Rs 1,100.

As the financial services arm of the Tata Group, Tata Capital boasts a diverse portfolio spanning consumer loans, wealth management, distribution of Tata Cards, and commercial finance. This move to take Tata Capital public aligns with the broader strategy of diversification and expansion within the conglomerate.

Meanwhile, Tata Sons, while mandated to list by RBI regulations, is exploring options to potentially seek an exemption by repaying outstanding loans. Recent divestments, such as the sale of Tata Sons' stake in TCS, signal a proactive approach towards debt reduction, potentially averting the necessity of an IPO to meet regulatory obligations.

In essence, Tata Capital's upcoming IPO underscores the conglomerate's commitment to financial transparency and market compliance, while also presenting an opportunity for investors to partake in the growth trajectory of one of India's leading financial institutions.