Milestone Gears Limited has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the proposed Milestone Gears IPO, aiming to raise up to ₹1100 crore.
The manufacturer is known for producing high-precision and complex engineered transmission components used across tractors, construction equipment, electric vehicles (EVs), locomotives, windmills, and other heavy industrial applications.
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The Milestone Gears IPO consists of a fresh issue of equity shares aggregating up to ₹800 crore and an offer for sale (OFS) by existing shareholders amounting to ₹300 crore. The equity shares have a face value of ₹2 each.
Milestone Gears IPO: Utilisation of Proceeds
According to the DRHP, the company intends to use the net proceeds from the fresh issue for the following purposes:
- Repayment or prepayment, either fully or partially, of certain outstanding borrowings and accrued interest.
- Funding capital expenditure for setting up a new manufacturing facility at Mohal Bated, Tehsil Baddi, District Solan, Himachal Pradesh, as part of its proposed greenfield expansion project.
- Supporting general corporate activities.
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Milestone Gears IPO: Industry Presence and Customer Base
Milestone Gears specializes in delivering precision-engineered transmission components to both Indian and global original equipment manufacturers (OEMs).
Between April 1, 2022, and June 30, 2025, the company has supplied products to more than 50 customers, including all top nine OEMs in the tractor sector in India, according to the 1Lattice Report. The company has built strong, long-term relationships with most of its customers.
Milestone Gears IPO: Listing and Lead Managers
The equity shares offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE. JM Financial Limited, Axis Capital Limited, and Motilal Oswal Investment Advisors Limited are serving as the Book Running Lead Managers for the Milestone Gears IPO.
