By ipomarket.in Editorial Team · Last reviewed: 2026-11-12
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
Milestone Gears, a Haryana-based precision components manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on 18 November 2025, setting the stage for a ₹1,100 crore initial public offering. A DRHP is the preliminary offer document a company submits to SEBI; it is not approval to launch the issue, and several key terms remain open.
This article summarises what the DRHP discloses, the company's business and financials, and — importantly — what has not yet been announced.
Deal structure: fresh issue plus OFS
The proposed IPO of ₹1,100 crore is split into two parts:
- A fresh issue of ₹800 crore, where the money goes to the company.
- An offer-for-sale (OFS) of ₹300 crore by promoters and existing shareholders, where the proceeds go to the selling shareholders rather than the business.
Understanding this split matters. If you want a deeper explainer, see our guide on fresh issue vs OFS and where IPO money goes.
The company may also raise up to ₹160 crore through a pre-IPO placement, which would form part of the fresh issue. If that placement happens, the fresh issue component in the final IPO would be reduced accordingly.
Of the fresh issue proceeds, ₹356.8 crore is earmarked for repaying borrowings. The company's debt stood at ₹380.8 crore as of September 2025, so a large share of the fresh money is aimed at deleveraging rather than new capacity.
The equity shares have a face value of ₹2 each. The IPO is proposed to be listed on both the BSE and the NSE.
Business overview
Milestone Gears was established in 1984 and manufactures precision components used across tractors, construction equipment, electric vehicles, locomotives and windmills. It operates nine manufacturing facilities spread across Punjab, Haryana and Himachal Pradesh.
The company serves original equipment manufacturers (OEMs) including Mahindra & Mahindra, TAFE, Escorts, CNH Industrial, John Deere and JCB. According to the draft prospectus, between April 2022 and June 2025 the company supplied products to more than 50 customers, including all top nine tractor OEMs in India.
As of 30 June 2025, Milestone Gears had 1,417 permanent employees and 2,038 contractual employees.
Financials: revenue dip, sharp profit jump
The company's recent operational revenue has moved as follows:
| Period | Operational revenue | Net profit |
|---|---|---|
| FY23 | ₹612.94 crore | — |
| FY24 | ₹533.32 crore | ₹6.7 crore |
| FY25 | ₹530.17 crore | ₹22.06 crore |
Revenue has been broadly flat to slightly lower over the three years, slipping from ₹612.94 crore in FY23 to ₹530.17 crore in FY25. Profitability, however, improved sharply in the most recent year: net profit rose 228.3% in FY25 to ₹22 crore from ₹6.7 crore in FY24.
For retail investors, the contrast between a declining topline and a rising bottom line is worth examining in the final prospectus — the margin improvement could stem from cost control, product mix, or one-off items. Our guide on how to analyse IPO financials from the RHP walks through what to check.
Lead managers and registrar
JM Financial, Axis Capital and Motilal Oswal Investment Advisors have been appointed as book-running lead managers to the issue. KFin Technologies Limited is the registrar.
What is still not disclosed
Several details that retail investors usually want are not yet available at the DRHP stage:
- IPO opening and closing dates have not yet been announced.
- The price band has not been announced, so valuation multiples cannot be calculated.
- The lot size has not been announced.
These are typically finalised in the Red Herring Prospectus closer to the launch, after SEBI reviews the draft and issues its observations. Until then, any date or valuation circulating in the market should be treated as speculation. For context on how the full journey works, see how the IPO process works in India from DRHP to listing.
FAQ
What is the Milestone Gears IPO date?
The IPO opening and closing dates have not yet been announced. The company has only filed its DRHP with SEBI on 18 November 2025. Dates are usually confirmed later, after SEBI issues its observations and the Red Herring Prospectus is filed.
How large is the Milestone Gears IPO?
The total issue size is ₹1,100 crore, made up of an ₹800 crore fresh issue and a ₹300 crore offer-for-sale. The company may also raise up to ₹160 crore via a pre-IPO placement, which would be part of the fresh issue.
What is the price band and lot size?
Neither the price band nor the lot size has been disclosed yet. The face value of each share is ₹2. Valuation can only be assessed once the price band is published in the RHP.
What does Milestone Gears do?
Founded in 1984, the company manufactures precision components for tractors, construction equipment, electric vehicles, locomotives and windmills. It runs nine facilities across Punjab, Haryana and Himachal Pradesh and supplies OEMs such as Mahindra & Mahindra, TAFE, Escorts, CNH Industrial, John Deere and JCB.
How were its financials in FY25?
Operational revenue was ₹530.17 crore in FY25, roughly flat versus ₹533.32 crore in FY24, while net profit rose 228.3% to ₹22.06 crore from ₹6.7 crore a year earlier.
Last reviewed: 2026-11-12. Figures are drawn from the company's DRHP and news reports; please verify against the final offer document before making any decision.