Hunger Pangs Ltd., the company behind Burma Burma Restaurant & Tea Room, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering. The proposed IPO includes a fresh issue of equity shares worth up to ₹150 crore and an offer for sale (OFS) of up to 2.79 crore existing shares by promoters, investor funds and other shareholders. The company plans to use the fresh capital primarily to open new Burma Burma restaurants across India and for general corporate purposes.
The filing comes as Hunger Pangs expands its premium Pan-Asian casual dining business while working to improve profitability. Revenue from operations increased 46.56% to ₹155.50 crore in the financial year ended March 2026, but the company reported a net loss of ₹15.37 crore. As of July 31, 2026, it operated 22 restaurants across nine Indian cities, alongside a delivery kitchen and three warehouses. The proposed listing would give public-market investors an opportunity to evaluate the restaurant operator’s expansion plans, financial performance and ability to build a scalable dining brand.
Key Takeaways
- IPO filing: Hunger Pangs has submitted its DRHP to SEBI.
- Fresh issue: The company plans to raise up to ₹150 crore in new equity capital.
- Offer for sale: Existing shareholders intend to sell up to 2.79 crore shares.
- Use of proceeds: Fresh-issue funds will primarily support new restaurant openings and general corporate purposes.
- Revenue growth: FY26 revenue from operations rose 46.56% to ₹155.50 crore.
- Profitability challenge: The company reported a net loss of ₹15.37 crore in FY26, compared with ₹0.51 crore in FY25.
- Restaurant footprint: Hunger Pangs operated 22 restaurants across nine cities as of July 31, 2026.
- IPO timeline: The price band, subscription dates and final issue size have not yet been announced in the reports reviewed.
How the Hunger Pangs IPO Is Structured
The proposed public offering has two components: a fresh issue and an offer for sale. Although both are part of the IPO, they serve different purposes.
The fresh issue involves the company issuing new shares to investors. Hunger Pangs expects to raise up to ₹150 crore through this component, bringing new capital into the business to support its expansion.
The OFS, by contrast, involves existing shareholders selling their shares. The proposed sale covers up to 27,929,760 equity shares, or approximately 2.79 crore shares. The proceeds from those sales will go to the selling shareholders rather than directly to Hunger Pangs.
| IPO component | Proposed size | Purpose |
|---|---|---|
| Fresh issue | Up to ₹150 crore | Restaurant expansion and general corporate purposes |
| Offer for sale | Up to 2.79 crore shares | Sale of existing shareholders’ holdings |
| Total IPO value | Not yet finalised | Depends on the final offer structure and pricing |
The total value of the IPO cannot be determined from the fresh-issue amount alone because the OFS value will depend on the final offer price and the number of shares sold. The company has not yet announced its price band or subscription schedule in the reports reviewed.
Who is selling shares in the OFS?
The proposed OFS includes promoters Ankit Virendra Gupta and Chirag Narendra Chhajer, promoter-group entity Bbigplas Poly Pvt Ltd, and several investor shareholders.
The named selling investors include Negen Tech Opportunities Angel Fund, Venture Catalysts Angel Growth Fund and L V Angel Fund. Other shareholders listed in the filing-related reports include Nisarg Ajaykumar Vakharia, Shweta Sharma and Mehul Kirit Mehta.
The OFS gives existing shareholders a route to sell part of their holdings through the public offering. The fresh issue, meanwhile, is the component intended to finance Hunger Pangs’ future growth.
Panthomath Capital Advisors Pvt Ltd has been appointed as the sole book-running lead manager for the proposed IPO.
Where Will the Fresh IPO Money Go?
Hunger Pangs intends to use the fresh-issue proceeds primarily to establish new Burma Burma restaurants in India. The remaining amount is proposed to support general corporate purposes, subject to the final offer documents and applicable requirements.
The company’s detailed expansion plan includes opening additional outlets in existing markets and entering new locations. Its draft offer materials indicate a plan to add 27 restaurants over the two financial years following the current fiscal year.
The company is evaluating locations based on factors such as customer spending potential, accessibility, real estate configuration, catchment quality and the economics of individual sites.
Restaurant expansion requires significant upfront investment. Expenses can include security deposits, leasehold improvements, kitchen equipment, furniture, staff recruitment, training, inventory and pre-opening marketing. New locations may also take time to reach stable customer traffic and operating profitability.
Using IPO proceeds for expansion could reduce the company’s reliance on other sources of funding for these investments. However, the financial outcome will depend on how efficiently Hunger Pangs deploys the money and whether new restaurants generate sufficient sales to cover their operating costs.
What Is Burma Burma’s Business Model?
Burma Burma Restaurant & Tea Room operates in the premium Pan-Asian casual dining segment, with a focus on Burmese cuisine. The brand combines food with cultural storytelling, distinctive interiors and a dining experience inspired by Myanmar’s culinary traditions.
The company differentiates itself from conventional restaurant chains by specialising in a cuisine that is less widely represented in India’s organised dining market. Its restaurants offer a curated menu and an experience built around the food, atmosphere and cultural context.
As of July 31, 2026, Hunger Pangs operated 22 restaurants, one delivery kitchen and three warehouses across nine Indian cities. Its outlets are located in premium malls, high streets and corporate parks.
The company also operates beyond dine-in dining through delivery services and its Burma Burma Shop platform, which provides an avenue for packaged food products and other direct-to-consumer offerings.
This mix could help the brand reach customers who do not regularly visit its restaurants. However, expanding packaged products and delivery requires separate attention to distribution, packaging, shelf life, marketing and customer acquisition.
Hunger Pangs Financial Performance: Revenue Rises, Losses Widen
Hunger Pangs’ FY26 results show that the company is growing, but the increase in revenue has not yet translated into a stronger bottom line.
Revenue from operations rose to ₹155.50 crore in FY26 from ₹106.10 crore in FY25, representing year-on-year growth of 46.56%. EBITDA increased to ₹25.68 crore from ₹21.35 crore.
However, the company reported a net loss of ₹15.37 crore in FY26, compared with a loss of ₹0.51 crore in the previous financial year.
| Financial metric | FY25 | FY26 |
|---|---|---|
| Revenue from operations | ₹106.10 crore | ₹155.50 crore |
| EBITDA | ₹21.35 crore | ₹25.68 crore |
| EBITDA margin | 20.13% | 16.51% |
| Net profit/(loss) | -₹0.51 crore | -₹15.37 crore |
| Revenue growth | — | 46.56% |
Figures are rounded from the company’s reported financial information.
The numbers reveal two different trends. Revenue growth suggests that Hunger Pangs is expanding its business and generating higher sales. But EBITDA grew more slowly than revenue, causing the EBITDA margin to decline from 20.13% to 16.51%.
EBITDA measures earnings before interest, taxes, depreciation and amortisation. It is useful for examining operating performance, but it is not the same as net profit or cash flow. Depreciation, finance costs, taxes and other expenses can affect the final result.
The widening net loss is therefore an important factor for prospective investors. They will need to assess whether the losses reflect expansion-related investment, other costs or a combination of factors, and whether the company can improve its earnings as its restaurant network grows.
Can Restaurant Expansion Improve Profitability?
Opening more restaurants can increase sales and expand a brand’s geographic reach, but growth alone does not guarantee stronger profits.
Each outlet must generate enough revenue to cover rent, staff costs, ingredients, utilities, maintenance and other recurring expenses. Premium locations can offer access to customers with higher spending power, but they may also involve higher rents and upfront investment.
The timing of new restaurant openings matters as well. A new outlet may require several months to build awareness and reach stable sales. If a company opens many locations within a short period, pre-opening expenses and the time needed to establish customer traffic can put pressure on its financial results.
Hunger Pangs will need to maintain food quality and service standards while expanding across cities. It will also need to manage procurement, kitchen processes, staff training and inventory consistently across a larger network.
Its existing operating model includes standardised recipes, centralised procurement and structured training. These systems can support consistency, but the challenge is to preserve the customer experience as the restaurant count increases.
Investors will likely watch same-store sales, restaurant-level margins, new-outlet payback periods and the pace of expansion in future financial disclosures.
Delivery and Packaged Food Offer Additional Growth Channels
Hunger Pangs is also exploring ways to expand beyond traditional dine-in operations.
Its delivery business contributed 10.76% of revenue from operations in FY26. Delivery can help a restaurant reach customers who prefer eating at home or at work, potentially extending the brand’s reach beyond the areas immediately surrounding its physical outlets.
However, delivery economics differ from dine-in operations. Packaging, platform-related charges, delivery logistics and discounts can affect the revenue retained from each order. The company will need to ensure that additional delivery sales contribute meaningfully to profitability.
The Burma Burma Shop platform provides another route to develop direct-to-consumer offerings, including ready-to-eat and packaged food products. These products could help the brand reach consumers who want to experience its cuisine outside a restaurant.
Packaged foods also bring different operational requirements, including product development, shelf-life testing, quality control, distribution and marketing. Expansion into this segment may diversify revenue, but it will require investment and execution.
The proposed IPO could provide capital to support the restaurant network while the company continues to develop these adjacent businesses.
What the IPO Means for India’s Restaurant Industry
Hunger Pangs’ filing comes amid continuing interest in India’s organised food-service sector, where restaurant operators are seeking to expand established brands across cities and customer segments.
Premium casual dining companies compete not only on food but also on location, ambience, service and the overall experience. Differentiated cuisine can help a brand stand out, but it may also require sustained spending on customer education, marketing and menu innovation.
A public listing would expose Hunger Pangs to greater scrutiny of its financial performance, capital allocation and expansion strategy. It would also create a potential market reference point for investors assessing premium restaurant businesses.
The IPO filing itself does not guarantee that the issue will proceed on the proposed terms. The final offer structure, price band, subscription dates and listing timetable will depend on subsequent disclosures and the applicable regulatory process.
For investors, the central question will be whether Hunger Pangs can turn its revenue growth and brand differentiation into sustainable profitability while expanding its footprint.
The Bigger Picture
Hunger Pangs is seeking public-market capital to expand a specialised restaurant concept at a time when its revenue is growing rapidly but its net losses have widened. The proposed ₹150 crore fresh issue would support new restaurant openings, while the OFS would give existing shareholders an opportunity to sell part of their holdings. These two components have different financial implications for the company and its investors.
The long-term opportunity depends on more than adding outlets. Hunger Pangs must demonstrate that its premium Burmese dining concept can attract repeat customers, maintain operating standards and generate attractive returns on new locations. Its delivery and packaged-food businesses could provide additional growth channels, but the company’s ability to manage costs and improve profitability will remain central to its IPO story.
Looking Ahead
The next important steps are the publication of further IPO details, including the price band, issue dates and final offer structure. Investors will also be able to examine the complete offer documents for additional information about the company’s risks, financial position, expansion plans and intended use of proceeds. Until those details are announced, the ₹150 crore fresh issue should be treated as a proposed fundraising amount rather than a completed capital raise.
After the filing stage, Hunger Pangs’ progress will depend on regulatory developments, investor demand and the execution of its expansion plan. Its FY26 revenue growth provides evidence of business momentum, but the widening net loss highlights the need for stronger profitability. The public-market test will be whether investors believe the company’s brand, restaurant economics and growth strategy justify the valuation eventually proposed.
Frequently Asked Questions
1. What is Hunger Pangs?
Hunger Pangs Ltd. owns and operates Burma Burma Restaurant & Tea Room, a premium Pan-Asian casual dining chain specialising in Burmese cuisine.
2. How much is Hunger Pangs planning to raise through its IPO?
The company has proposed a fresh issue of equity shares worth up to ₹150 crore. The IPO also includes an offer for sale of up to 2.79 crore existing shares.
3. How will Hunger Pangs use the fresh issue proceeds?
The company plans to use the proceeds primarily to open new Burma Burma restaurants across India, with the remaining amount allocated for general corporate purposes.
4. How many restaurants does Burma Burma operate?
As of July 31, 2026, Hunger Pangs operated 22 restaurants across nine Indian cities, along with one delivery kitchen and three warehouses.
5. Is Hunger Pangs profitable?
No. The company reported a net loss of ₹15.37 crore in FY26, compared with a loss of ₹0.51 crore in FY25, despite revenue growth of 46.56%.
6. When will the Hunger Pangs IPO open?
The price band and subscription dates have not yet been announced in the reports reviewed. Investors should wait for the company’s subsequent disclosures for the confirmed timetable.
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