Milestone Gears Files ₹11 Billion IPO, Targets Debt Reduction And Expansion

Milestone Gears Ltd, a precision engineering firm specializing in gear and transmission systems, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering valued at ₹11 billion. The IPO includes a fresh issue of equity shares aggregating up to ₹8 billion and an offer for sale (OFS) of ₹3 billion by existing shareholders.

The company plans to utilize the net proceeds from the fresh issue to repay outstanding borrowings and finance capital expenditure for expanding and upgrading its manufacturing facilities. This move is aimed at strengthening its balance sheet and enhancing production capabilities to meet growing domestic and international demand.

Key highlights from the filing include:  

• The ₹8 billion fresh issue will support debt reduction and fund facility capex for operational scale-up.
• The ₹3 billion OFS will provide a partial exit for promoters and early investors.
• JM Financial, Axis Capital, and Motilal Oswal Investment Banking have been appointed as the book-running lead managers.
• Milestone Gears serves clients across automotive, industrial, and renewable energy sectors, with a growing export footprint.
• The IPO aligns with India’s broader manufacturing push and investor appetite for engineering-led growth stories.

Sources: SEBI DRHP Filings, Moneycontrol IPO Tracker, Business Standard Markets.