Haryana-based Milestone Gears, which manufactures transmission components for tractor, construction equipment, electric vehicles, and heavy industries, has filed Draft Red Herring Prospectus (DRHP) with the SEBI on November 18 to raise Rs 1,100 crore via initial public offering (IPO).
The company has proposed to issue fresh shares worth Rs 800 crore, and its promoters and other selling shareholder will be selling Rs 300 crore worth shares via offer-for-sale.
Before the filing of Red Herring Prospectus (RHP) or launching the IPO, it may consider raising funds up to Rs 160 crore in pre-IPO round, which is a part of the fresh issue component.
The 91.66 percent shareholding in Milestone Gears, which commenced operations in 1984 with the machining of bull gears and rear axle shafts, and has since entered into several high-precision, complex engineered transmission components manufacturing is owned by Tandon family (i.e. promoters). The remaining 8.34 percent shares are held by Gagandeep Kaur Chawla.
The company intends to utilise Rs 356.8 crore of fresh issue proceeds for repayment of certain outstanding borrowings, which will reduce its significant debt burden on its books. As of September 2025, its aggregate outstanding borrowings was Rs 380.8 crore.
Further, it will spend Rs 296.4 crore funds for setting up of a new manufacturing facility at Solan, Himachal Pradesh, and the remainder funds will be used for general corporate purposes.
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Milestone Gears that competes with several listed entities like Bharat Forge, Sona BLW Precision Forgings, Happy Forgings, Ramkrishna Forgings, and Shanthi Gears supplies its products to Indian and global original equipment manufacturers (OEM) including all the top nine OEMs in the tractor sector in India.
Tractor segment contributed 83 percent to its total business, in which it has long standing relationship with key customers like Tafe Motors & Tractors, Tractor & Farm Equipment, and Mahindra & Mahindra.
In fact, the company claims significant market share in bull gears, internal ring gears, rockshafts and other induction hardened shafts, and rear axles products used for tractors in India.
With nine manufacturing facilities in Punjab, Haryana and Himachal Pradesh, it also supplies products to Valeo, Wabtec, Liebherr, Caterpillar and John Deere India, International Tractors, Escorts Kubota, JCB India, and Cnh Industrial (India).
On the financial front, Milestone Gears has reported inconsistency in numbers for the recent past years. Profit in the fiscal 2025 stood at Rs 22 crore, growing sharply by 228.3 percent compared to Rs 6.7 crore in previous fiscal. Revenue during the same period fell 0.6 percent to Rs 530.2 crore, down from Rs 533.3 crore.
In the quarter ended June 2025, it has recorded profit of Rs 9.4 crore on revenue of Rs 168 crore.
The merchant bankers managing the Milestone Gears IPO will be JM Financial, Axis Capital, and Motilal Oswal Investment Advisors.
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