Tata Capital, the financial services arm of the Tata Group, has officially kickstarted the process for its much-anticipated Initial Public Offering (IPO), aiming for a market debut in 2025. This move aligns with the Reserve Bank of India’s (RBI) mandate for "upper layer" Non-Banking Financial Companies (NBFCs) to go public within three years of being classified under the category. The company has reportedly begun filing early paperwork, laying the foundation for what could become one of the most prominent IPOs in India’s financial sector next year. According to reports, Tata Capital is currently undergoing internal restructuring, including the merger of Tata Motors Finance with itself, to streamline operations before hitting the public markets. As per RBI regulations introduced in 2021, NBFCs categorized as “upper layer” are required to list on the stock exchanges within a three-year timeframe. Tata Capital received this classification in September 2022, giving it a listing deadline of September 2025. The IPO is expected to attract strong interest from both retail and institutional investors, given the Tata brand’s credibility and Tata Capital’s wide footprint in retail and corporate lending, wealth management, and infrastructure financing. While the draft red herring prospectus (DRHP) is yet to be filed with SEBI, industry insiders anticipate that the formal process will gather momentum once the National Company Law Tribunal (NCLT) approves the merger of Tata Motors Finance with Tata Capital. If successful, this would mark the Tata Group’s second major IPO in recent years following the blockbuster listing of Tata Technologies in 2023. The Tata Capital IPO could significantly strengthen the group’s financial vertical and offer investors access to one of India's most trusted and diversified financial service providers.