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GMP— what is the grey market premium?

Milestone Gears IPO

Milestone Gears Limitedmilestonegroup.co.in

AnnouncedMainboardIndustrialsNSE · BSE
Price band
—
Issue size
₹1,100 Cr

73% fresh capital

Lot size
—
Bidding
—

Listing date to be set

Grey market
—

No quote recorded

Market data to 17 Oct 2026. Company figures are as filed, sourced 17 Oct 2026. Every figure’s origin is listed under Sources.

IPOVista score

How this issue scores, and why

Every pillar opens to show the raw metric, the curve it was mapped through, the sub-score and its weight. Disagree with the weighting if you like — the arithmetic is all here.

44Mixed
IPOVista score 44 out of 100, graded Mixed.

IPOVista score

Balance sheet is the open question

61% of the scoring model was backed by disclosed data for Milestone Gears, giving medium confidence. Weights for anything missing were redistributed rather than scored as zero.

How this score is built
PillarScoreWeight

Below the line: market sentiment. Capped at 8 of 100 points so a hot grey market can tilt a score but never carry one.

Read this before the number

  • Leveraged balance sheet

    Debt-to-equity of 3.2× leaves limited headroom if demand softens or rates rise.

The IPOVista Score is a transparent summary of disclosed fundamentals and issue terms. It is research, not investment advice, and it cannot predict listing performance.

The company

What the business actually does

Founded 1984 · Parwanoo, District Solan, Himachal Pradesh (registered office); corporate office at Kalka, Haryana · 1,417 employees

Milestone Gears makes high-precision, complex engineered transmission components — bull gears, rear axles, internal ring gears, rock shafts and induction-hardened shafts, transmission gears and shafts, cut bevel gears, spindles, and ground gears and shafts — that sit inside the drivetrains of tractors, construction equipment, electric vehicles, locomotives and windmills. It sells to original equipment manufacturers, not the aftermarket. Between April 2022 and June 2025 it supplied more than 50 customers, including all nine of the largest tractor OEMs in India; named customers in the DRHP include TAFE, Tractor & Farm Equipment, Mahindra & Mahindra and its Swaraj division, John Deere India, Caterpillar, Liebherr, Valeo and Wabtec. Nine plants across Himachal Pradesh, Punjab and Haryana run forging, machining and heat treatment in-house. Exports were 9.43% of product sales in FY25, to ten countries.

Revenue is per-part supply to OEMs, won through long product-approval cycles: the top ten customers were 94.43% of revenue from sale of products in FY25 and those relationships average more than 18 years, so volumes follow tractor and construction-equipment cycles rather than Milestone's own selling. Alloy steel is the main input — raw materials and components consumed were 47.26% of FY25 revenue — and forging, machining and heat treatment are in-house across nine plants; bull gears, its largest line, ran at 76.53% capacity utilisation in FY25. The structural constraint is the balance sheet: net debt was 3.23x equity at 31 March 2025 and finance costs took 5.34% of FY25 revenue, which is why Rs 356.86 crore of the fresh issue repays borrowings.

The company on paper

Legal name
Milestone Gears Limited
IncorporatedThe legal entity is often incorporated years before the brand you know, and may have traded under another name first
27 Apr 1984
CINCorporate Identity Number — the unambiguous handle for looking this company up at the MCA
U74110HP1984PLC005831
Sector
Industrials · Precision transmission gears and shafts for tractors and off-highway
Employees
1,417
Registered office
Parwanoo, District Solan, Himachal Pradesh (registered office); corporate office at Kalka, Haryana
Promoters
Ashok Kumar Tandon, Aman Tandon
Promoter holding, pre-issue
75.0%

The numbers

Financial performance

Revenue has compounded at −7.0% a year across the 3 reported financial years.

Revenue and profit

Figures in ₹ crore, as reported in the prospectus. Interim quarters are not annualised.

  • Revenue
  • Profit after tax

Margin trend

Profit and operating margin as a percentage of revenue

  • Net margin
  • EBITDA margin

Net worth and borrowings

At each period end, in ₹ crore. Gearing below each period is borrowings over net worth, from these same figures.

  • Net worth
  • Total borrowings

The price

Valuation

Ratios as disclosed in the prospectus, calculated at the upper end of the price band. P/E is always shown on post-issue earnings so issues stay comparable with each other.

P/E at the band, post-issue
Not priced yet

No price band has been fixed yet, so there is no multiple to quote

Median P/E of its named peers
38.5×

5 listed companies the prospectus names itself

What you pay

Earnings and sales behind one share, and the multiple the band asks for them.

EPS, pre-issue (FY25)
₹2.45
EPS, post-issueNot disclosed, so computed from FY25 profit after tax and the disclosed share count — this is the figure the multiple above is built on
₹2.45
Price / sales
—
Net asset value per shareBook value behind one share — a floor, not a target
₹14.03

What it earns on what it has

Returns and margins on FY25. These are the figures that say whether the multiple above is deserved.

Return on net worthAs disclosed in the prospectus, on its own formula — Indian issuers define RoNW on average net worth, not closing.
17.5%
Return on capital employed
12.2%
EBITDA margin
18.2%
Net margin
4.2%

What it owes

Gearing at the latest balance-sheet date.

Debt to equityAs disclosed in the prospectus. Issuers divide by total equity, which includes non-controlling interests — a wider base than the net worth used for RoNW.
3.23×

Valuation against listed peers

P/E against operating margin

The peer table does not carry both a P/E and an operating margin for enough companies to plot.

The terms

How the issue is structured

73% of the money raised is fresh capital that goes to the company; the rest goes to shareholders selling down.

Fresh issueNew shares — proceeds go to the company
₹800 Cr
Offer for saleExisting shares — proceeds go to the selling shareholders
₹300 Cr
Total issue size
₹1,100 Cr
Shares offered in the OFS
—
Pre-issue shares outstanding
9,00,00,000
Employee discount
—

Who the shares are reserved for

Share of the net offer set aside for each investor category

50%QIB

Select a category to see who bids in it and how allotment works there.

Percentages are of the net offer, which excludes any employee or shareholder reservation.

Use of proceeds

Stated objects of the fresh issue, largest first

  • Repairs the balance sheet
  • Invested in growth

Repayment/ prepayment, in full or in part, of certain outstanding borrowings and accrued interest thereon availed by our Company

₹357 Cr

Financing the capital expenditure requirements in relation to setting up of a new manufacturing facility at Mohal Bated, Tehsil Baddi, District Solan, Himachal Pradesh (the "Proposed Greenfield Project")

₹296 Cr
  • General corporate purposes - the amount to be utilised shall not exceed 25% of the Gross Proceeds and will be finalised upon determination of the Offer Price — amount not quantified in the prospectus

Hover or focus an object to see whether that spending grows the business or repairs the balance sheet.

45% of the quantified proceeds is earmarked for growth; the rest repairs the balance sheet or is unallocated.

Who owns it before the issue

7 holders of record. Percentages are of pre-issue paid-up equity, as stated in the offer document.

58.33%Ashok Kumar Tandon

Pre-issue. The offer document leaves the post-issue column to be filled at the prospectus stage, so it is not shown here.

Demand

What the market is bidding

Subscription is hard exchange data. Grey-market premium is not — it is an unofficial quote, shown because readers want it and labelled because it deserves the label.

Subscription by category

Cumulative bid multiples

No dates have been set yet, so bidding has not opened.

Grey market premium

Unofficial over-the-counter sentiment

No grey-market quotes have been recorded for this issue.

Work it out

What this means for one application

Three calculations, each stating the assumption it rests on.

What one application costs

Shares are applied for in whole lots at the cut-off price. The full amount is blocked in your bank account under ASBA, not debited, until allotment.

The lot size and price band are not fixed yet, so there is nothing to calculate.

Odds of getting an allotment

When the retail category is oversubscribed, SEBI requires a lottery for the minimum lot. Every application has the same chance, whatever its size.

Retail subscription figures are not available yet, so there is nothing to estimate from.

What the grey market implies

Arithmetic on an unofficial quote. The grey market has no clearing house and no obligation to settle — this is sentiment made numeric, not a forecast.

No grey-market quote has been recorded for this issue.

Our read

Easy to misread

Grounded only in figures disclosed in the prospectus. This is analysis, not a recommendation.

Easy to miss in the prospectus

  • Revenue fell from Rs 612.94 cr in FY23 to Rs 530.17 cr in FY25 while PAT rose from Rs 14.07 cr to Rs 22.06 cr: the EBITDA margin widened from 12.53% to 18.16% over the same period, so profit growth is margin, not volume.
  • Pre-offer promoter holding of 74.99% is the two named promoters (Ashok Kumar Tandon 58.33%, Aman Tandon 16.66%). Including the promoter group the Tandon family holds 91.66%; press reports that cite 91.66% are using the wider figure.
  • The DRHP permits a pre-IPO placement of up to Rs 160 crore, which if completed would be deducted from the Rs 800 crore fresh issue, so the stated Rs 1,100 crore total is an upper bound.

Straight from the filing

Read it yourself

Every figure on this page comes out of these. Go and check them.

Served by the issuer, the exchange or the regulator — never a copy hosted here, so what you open is the filing itself.

The paperwork

Who is running the issue

Lead managers
JM Financial Limited, Axis Capital Limited, Motilal Oswal Investment Advisors Limited
RegistrarAllotment status is checked on the registrar's own site
KFin Technologies Limited

How these figures were checked

Reconciled to Milestone Gears's own prospectus and to exchange disclosures, then cross-checked against 4 other independently published compilations of the same filing. Where a stated ratio disagreed with the line items it should come from, the disagreement was settled against the prospectus itself.

The prospectus is the authoritative document. Check anything that matters against it before you act.

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