Tata Group's Tata Capital is one step closer to listing on Dalal Street, with reports indicating that the company approved its initial public offering (IPO) plans on Tuesday. According to a Reuters report, Tata Capital will issue 23 crore new shares, while some existing shareholders will exit through the offer for sale (OFS) route.The Tata Group company had commenced its preparations for the IPO and initiated discussions with certain bankers earlier in December, as reported by ET. The conglomerate had given Kotak Investment Banking officials the go-ahead to commence the process after a meeting.Tata Sons holds a 93% stake in Tata Capital.This will be the Tata Group's second IPO in two decades, following the successful listing of Tata Technologies in November last year.In September 2022, the RBI designated Tata Capital Financial Services as an upper-layer systemically important NBFC, requiring it to implement stricter regulatory frameworks and complete listing within three years.Tata Capital serves as the holding company for the group's three lending businesses- Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital, as well as three investment and advisory businesses- Tata Securities, Tata Capital Singapore, and its private equity division.Tata Capital holds strategic significance for the Tata Group as it fulfills the funding needs of various entities within the conglomerate.The conglomerate is a financial services company that offers a variety of products and services to individuals, businesses, and institutions such as personal loans, loans against property, credit cards, investment banking, and life insurance among others.