Milestone Gears Limited, a manufacturer of high-precision transmission components used across tractors, construction equipment, EVs, locomotives, windmills and other heavy industries, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to ₹1,100 crore.
The proposed issue includes a fresh equity issuance worth ₹800 crore and an offer for sale (OFS) of shares totalling ₹300 crore by existing shareholders.
According to the DRHP, the company intends to utilise the fresh capital for repayment or prepayment of certain borrowings, funding a new manufacturing facility at Mohal Bated in Himachal Pradesh, and for general corporate purposes.
Milestone Gears supplies a wide range of complex, engineered transmission components — including bull gears, transmission gears and shafts, rear axles, spindles, internal ring gears, and bevel gears — to leading domestic and global OEMs. Between April 1, 2022, and June 30, 2025, the company catered to over 50 customers, including all top nine tractor OEMs in India, as per a 1Lattice report.
The company plans to list its shares on both the BSE and NSE. JM Financial, Axis Capital and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.
Milestone Gears positions itself as a technology-driven manufacturer with end-to-end production capabilities, enabling it to meet evolving engineering requirements and expand into new product lines while maintaining efficiency across its existing portfolio.
Disclaimer: The IPO is subject to statutory approvals and market conditions. Potential investors are advised to review the DRHP, available on the websites of SEBI, the stock exchanges, the company, and the book-running lead managers, and carefully evaluate the risk factors before making any investment decisions.
