Milestone Gears Files DRHP With SEBI to Raise ₹1,100 Crore via IPO

Milestone Gears has filed its Draft Red Herring Prospectus with SEBI on November 18. The company aims to raise ₹1,100 crore via an initial public offering.

Background

Established in 1984, Milestone Gears began with machining bull gears and rear axle shafts. Today, it manufactures high-precision transmission components for tractors, construction equipment, electric vehicles, and heavy industries.

Key Details

The IPO includes a fresh issue of shares worth ₹800 crore and an offer-for-sale of ₹300 crore by promoters and other shareholders. Before launching the IPO, the company may raise up to ₹160 crore through a pre-IPO placement, which will be part of the fresh issue.

Promoters, the Tandon family, hold 91.66% of the company, while Gagandeep Kaur Chawla owns 8.34%.

Financial Impact

From the fresh issue proceeds, ₹356.8 crore will be used to repay borrowings, reducing its debt of ₹380.8 crore as of September 2025. Another ₹296.4 crore will fund a new manufacturing facility in Solan, Himachal Pradesh. The remaining amount will be allocated for general corporate purposes.

Industry Position

Milestone Gears operates nine manufacturing facilities across Punjab, Haryana, and Himachal Pradesh. It supplies components to major Indian and global OEMs, including John Deere India, Caterpillar, Valeo, Wabtec, Liebherr, JCB India, and CNH Industrial. The tractor segment contributes 83% of its revenue, with key clients such as Mahindra & Mahindra, TAFE Motors & Tractors, and Tractor & Farm Equipment.

The company competes with listed players like Bharat Forge, Sona BLW Precision Forgings, Happy Forgings, Ramkrishna Forgings, and Shanthi Gears.

Read More: Sudeep Pharma IPO to Open on November 21, Aiming to Raise ₹895 Crore.

Conclusion

Milestone Gears’ IPO aims to strengthen its balance sheet and expand manufacturing capacity. The move positions the company for growth in the transmission components segment.

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