This precision components maker wants to raise ₹1,100cr via IPO
What's the story
Milestone Gears, a precision-engineered transmission components maker, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise ₹1,100 crore through an initial public offering (IPO). The company's first public offering includes a fresh issue of shares worth up to ₹800 crore, and an offer-for-sale (OFS) component worth ₹300 crore by its promoters and other shareholders.
Fundraising strategy
Milestone Gears's IPO and pre-IPO placement
Along with the IPO, Milestone Gears is considering a pre-IPO placement of up to ₹160 crore. If this is done, the amount will be deducted from the fresh issue. The company plans to use ₹356.86 crore from the fresh issue for debt repayment and another ₹296.42 crore for funding a new greenfield project. The remaining funds will be used for general corporate purposes.
Business operations
Market presence and customer base
Milestone Gears manufactures high-precision, complex engineered transmission components for tractors, construction equipment, EVs, locomotives, windmills, and other heavy industries. The company serves Indian and global original equipment manufacturers (OEMs) including their affiliates. Milestone Gears has supplied products to over 50 customers, including all nine top OEMs in India's tractor sector.
Financials
Financial performance and IPO management
Milestone Gears has seen a sharp increase in profit for fiscal 2025 at ₹22 crore, up 228.3% from ₹6.7 crore in the previous fiscal year. However, revenue during the same period fell marginally by 0.6% to ₹530.2 crore from ₹533.3 crore previously. The firm has appointed JM Financial, Axis Capital and Motilal Oswal Investment Advisors as book-running lead managers for its IPO offering.