Hunger Pangs, the company that owns and operates Burma Burma Restaurant & Tea Room, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Saturday, October 17, for an initial public offering (IPO) comprising a fresh issue of up to ₹150 crore and an offer for sale (OFS) of up to 2.79 crore equity shares by existing shareholders.
The proceeds from the fresh issue will be used to set up new Burma Burma restaurants in India and for general corporate purposes. The company will not receive any proceeds from the offer for sale, which will accrue to the selling shareholders. Panthomath Capital Advisors is the sole book-running lead manager to the issue.
The proposed OFS includes up to 60 lakh shares each from promoters Ankit Virendra Gupta and Chirag Narendra Chhajer, and up to 42 lakh shares from promoter-group entity Bbigplas Poly. Investor selling shareholders include Negen Tech Opportunities Angel Fund, Venture Catalysts Angel Growth Fund and L V Angel Fund. Other selling shareholders include Nisarg Ajaykumar Vakharia, Shweta Sharma and Mehul Kirit Mehta. The price band and final offer size have not been specified in the DRHP.
Burma Burma’s expansion and business model
Founded in 2013, Burma Burma began operations in 2014 with its first restaurant in Mumbai. The brand focuses on Burmese cuisine, with an all-vegetarian, no-alcohol format and an experience-led premium dining proposition built around Burmese food, tea traditions and cultural design.
As of July 31, 2026, the company operated 22 restaurants across nine Indian cities, along with one delivery kitchen and three warehouses. Its restaurants are located in Mumbai, Ahmedabad, Kolkata, New Delhi, Gurugram, Noida, Chandigarh, Hyderabad and Bengaluru. As of June 30, 2026, it had 21 restaurants with a combined seating capacity of 1,991. The average bill value was ₹2,400 in FY26.
The company is looking to expand its restaurant network, explore additional brands and cuisines, introduce new menu offerings and strengthen customer engagement. It is also seeking to grow beyond dine-in through delivery and direct-to-consumer offerings, including packaged food products and ready-to-eat products.
Revenue rises, but company remains loss-making
Hunger Pangs’ revenue from operations rose 46.56% year-on-year to ₹155.50 crore in FY26 from ₹106.10 crore in FY25. Revenue had stood at ₹71.92 crore in FY24. Despite the growth, the company reported a net loss of ₹15.37 crore in FY26, compared with a loss of ₹1.53 crore in FY25. It had reported a loss of ₹6.57 crore in FY24.
For the three months ended June 30, 2026, revenue from operations stood at ₹53.73 crore. The company reported a profit of ₹1.09 crore for the period, compared with a loss in the corresponding full-year periods in FY24 and FY25.
The company’s growth is closely linked to adding restaurants and improving sales at existing outlets. The DRHP notes that a new restaurant typically takes around three to six months after opening to reach the sales and operating efficiency of an established outlet, while lease-related charges, depreciation and employee costs are incurred from the start of operations.
Burma Burma key IPO risks
The prospectus identifies several risks that could affect Hunger Pangs’ business and financial performance.
Dependence on a single brand: The company’s operations are concentrated in Burma Burma, leaving it with limited diversification across brands, formats or cuisines. Any decline in customer interest, negative publicity, food-quality concerns, service lapses or food-safety incident could have a disproportionate impact on its business. The company also notes that its all-vegetarian and no-alcohol format may limit its addressable customer base.
Expansion and cost risks: The company plans to use a significant portion of the fresh issue proceeds to establish new restaurants. It cautions that its funding requirements and deployment plans are based on management estimates and have not been independently appraised. Delays in ordering equipment or completing restaurant fit-outs could lead to cost overruns. New outlets may also take longer than expected to achieve profitability.
High occupancy costs: All restaurants operate from leased premises. Occupancy costs, including depreciation on right-of-use assets, interest on lease liabilities and rent and maintenance charges, amounted to ₹35.57 crore in FY26, or 22.87% of revenue from operations. These costs are substantially fixed, making performance sensitive to restaurant sales, lease terms and the time taken for new outlets to mature.
Reliance on delivery aggregators: Delivery sales accounted for 10.76% of revenue in FY26. The company pays commissions to third-party food-delivery platforms and warns that higher fees, unfavourable contract terms or disruptions in aggregator services could affect its delivery business and profitability. It also relies on third-party logistics providers to transport ingredients, packaging materials and other supplies to its restaurants.
The DRHP also flags competition from restaurant chains, standalone outlets and cloud kitchens, as well as exposure to food-input costs, consumer spending trends and regulatory requirements.
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