Business Profile of Milestone Gears Limited
Milestone Gears Limited was incorporated in 1984 and it engaged in the manufacturing of high-precision, complex engineered transmission components used across multiple sectors such as tractors, construction equipment, electric vehicles (EVs), locomotives, windmills and other heavy industries. They manufactures products such as bull gears, rear axles, spindles, internal ring gears and bevel gears, serving sectors including agriculture, construction equipment, EVs, locomotives and wind energy. The company supplies transmission components to Indian and global original equipment manufacturers (OEMs) and their affiliated entities. It operates nine manufacturing facilities located in Punjab, Haryana and Himachal Pradesh.
Objective of Milestone Gears Limited IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨2.00 each aggregating up to ₹ 8,000.00 million and OFS consists XXXX shares at face value of ₨ 2.00 each aggregating up to 3,000.00 million. There are fresh shares issues and OFS by company and main objective of company is investment in subsidiaries, re-payment of outstanding borrowings, capital expenditure requirement and general corporate purposes.
Details of MILESTONE GEARS Limited IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹2.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₨ 11,000.00 million. | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 8,000.00 million. | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 3,000.00 million. | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Milestone Gears Limited IPO: Issue Price & Size
The issue price of MILESTONE GEARS LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 11,000.00 million at the price of ₨XXXX.
Launch Date of Milestone Gears Limited IPO
The IPO opening date of MILESTONE GEARS LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Milestone Gears Limited
| Particulars (Rs In Millions) | Ended 31 March 2025 |
Ended 31 March 2024 |
Ended 31 March 2023 |
| Income | |||
| 1. Revenue from operations | 5,301.69 | 5.333.24 | 6,129.38 |
| II Other income | 167.20 | 26.69 | 27.04 |
| III. Total income ( I + II ) | 5,468.89 | 5,359.93 | 6,156.42 |
| Expenses | |||
| Cost of raw materials s consumed | 2.505.61 | 2,428.65 | 3,199.75 |
| Changes in inventories of finished goods | ( 326.19 ) | 139.23 | ( 380.82 ) |
| Employee benefits expense | 528.59 | 567.29 | 551.03 |
| Finance costs | 292.13 | 268.63 | 228.26 |
| Depreciation and amortization expense | 405.44 | 333.44 | 354.84 |
| Other expenses | 1,797.83 | 1,519.14 | 2,018.15 |
| IV. Total expenses | 5,203.41 | 5,256.38 | 5,971.21 |
| V. Restated Profit before tax ( III – IV ) | 265.48 | 103.55 | 185.21 |
| VI. Tax expense : | |||
| Current tax | 51.67 | 43.15 | 64.65 |
| Tax for carlier year | . | – | ( 0.26 ) |
| Deferred tax | ( 6.83 ) | ( 6.80 ) | ( 19.83 ) |
| Total tax expens | 44.84 | 36.35 | 44.56 |
| VII. Restated Profit for the period | 220.64 | 67.20 | 140.65 |
Key financial ratios of Milestone Gears Limited
| Key Performance Indicators (KPIs) | Units | Ended March 31 , 2025 |
Ended March 31 , 2024 |
Ended March 31 , 2023 |
| Financial Measures | ||||
| Revenue from Operations | ( in Mn ) | 5,301.69 | 5,333.24 | 6,129.38 |
| Revenue from operations (% Change) | ( % ) | ( 0.59 ) % | ( 12.99 ) % | NA |
| EBITDA | (in Mn) | 963.05 | 705.62 | 768.31 |
| EBITDA Margin | ( % ) | 18.16 % | 13.23 % | 12.53 % |
| PAT | (In Mn) | 220.64 | 67.20 | 140.65 |
| PAT Margin | ( % ) | 4.16 % | 1.26 % | 2.29 % |
| ROCE | ( % ) | 12.23 % | 9.04 % | 10.18 % |
| RONW | ( % ) | 17.47 % | 6.46 % | 14.54 % |
| Net Debt to Equity | ( Times ) | 3.23 | 3.23 | 3.48 |
| Fixed Asset Turnover | ( Times ) | 2.80 | 3.03 | 4.06 |
| Cash Conversion Cycle ( days ) | ( Days ) | 223 | 173 | 132 |
Promoters & Shareholding Milestone Gears Limited IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 91.66% shareholding in company.
| Name of Shareholder | No. of Equity Shares | % of total shareholding |
| Promoters & Promoter Group | 82,497,000 | 91.66 |
| Public | 7,503,000 | 8.34 |
| Total (A+B) | 90,000,000 | 100.00 |
Should You Subscribe To Milestone Gears Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Milestone Gears Limited IPO
Engineered Components Leader
The company has strengthened its engineering, product development and technological capabilities, which have allowed them to foray into newer products, resulting in a diverse product portfolio catering to diverse sectors like tractors, construction equipment, electric vehicles, locomotives, windmills and other heavy industries. These advances have enabled company to serve as a one-stop shop for a wide range of high-precision, complex engineered transmission components, with significant market share across various products and sectors.
Strong Tech Track Record
They are technology-oriented company that has invested significant capital in machinery to meet geometries and tolerances, ensuring their manufacturing capability remains aligned with the rising precision, strength and durability expectations of the sectors which company serve. Their advanced engineering expertise, combined with a deep understanding of customer requirements, enable to shorten prototyping lead times and deliver high quality, cost effective products that meet design specifications.
Multi-Sector Player with Strong EV Tailwinds
The extensive range of products, coupled with company continuous efforts to foray into new products, enables them to cater to various sectors, including tractors, construction equipment, EV, locomotive, windmills and other heavy industries. Consistently pursued product and sector diversification as a route to enlarge company addressable market and create multiple engines of growth. This diversified presence across various sectors and engineering capabilities provides flexibility to operate across business cycles.
Well-Located Manufacturing Base
The company has nine manufacturing facilities spread across Punjab, Haryana and Himachal Pradesh which are strategically located near to the delivery locations of some of their customers. This enables to meet their needs efficiently and cost-effectively. The customer proximity reduces logistics times and costs while enhancing supply chain resilience and enabling quick and agile response towards customer needs.
Risk Factors of Milestone Gears Limited IPO
Client Concentration Risk
The business of company is dependent on certain key customers, and top 10 customers contributed 92.96%, 94.43%, 96.42% and 98.35% of their revenue from sale of products in the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. The loss of revenue from top 10 customers could have an adverse impact on company business, results of operations, financial condition and cash flows.
No Long-Term Procurement Contracts
The company does not have any long-term binding contracts with its suppliers for the procurement of raw materials. In the three months ended June 30, 2025 and Fiscal 2025, 2024, and 2023, the cost of raw materials purchased from top three suppliers accounted for 80.00%, 83.51%, 73.69%, and 76.58% of total purchases, respectively. Any interruption in the availability of raw materials or any disruption could adversely impact company operations.
Operations Reliant on Raw Material Cost
The business and profitability is substantially dependent on the availability and cost of raw materials from suppliers. The cost of raw materials and components consumed accounted for 48.06%, 48.15%, 46.20%, and 53.59% of total expenses in three months ended June 30, 2025, Fiscal 2025, 2024 and 2023. Any unavailability caused by various external conditions or volatility in the prices of raw materials may adversely impact business, results of operations, financial condition and cash flows.
Exposure to Counterparty Risk
The company operations involve extending credit to customers in respect of sale of their products and consequently, company risk of uncertainty regarding the receipt of such outstanding amounts. Any delay or default in customers’ payment obligations towards company has an adverse effect on its business, results of operations, financial condition and cash flow.
Milestone Gears Limited IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the MILESTONE GEARS LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
