Precision components maker Milestone Gears Ltd on Tuesday filed preliminary papers with capital markets regulator SEBI to raise ₹1,100 crore through an initial public offering (IPO).
The company’s maiden public offering comprises fresh issue of shares aggregating up to ₹800 crore along with an offer for sale (OFS) component of shares valued at ₹300 crore by promoters and a shareholder, according to the Draft Red Herring Prospectus (DRHP).
Also, the company may consider a Pre-IPO placement of up to ₹160 crore, and if undertaken, the amount raised through this placement will be reduced from the fresh issue.
Of the fresh issue, the company will allocate ₹356.86 crore towards debt payment and another Rs 296.42 crore will be invested in a new greenfield project. Besides, a portion of the funds will be used for general corporate purposes.
Milestone Gears is a manufacturer of high-precision, complex engineered transmission components that have applications across multiple sectors, including tractors, construction equipment, electric vehicles (EVs), locomotives, windmills and other heavy industries.
The firm supplies its products to Indian and global original equipment manufacturers (OEM) customers, including their affiliated entities.
Between April 2022 and June 2025, the company has supplied products to more than 50 customers, including all the top nine OEMs in the tractor sector in India.
To manage the offering, Milestone Gears has appointed JM Financial, Axis Capital and Motilal Oswal Investment Advisors as the book-running lead managers.