Hunger Pangs IPO (October 17): Burma Burma Operator Files DRHP for ₹150 Crore Fresh Issue

The Hunger Pangs IPO is now on file. Hunger Pangs, the company that runs the Burma Burma Restaurant & Tea Room chain, has filed its draft red herring prospectus with SEBI for a public issue that pairs a fresh issue of up to ₹150 crore with an offer for sale (OFS) of up to 2.79 crore shares, CNBC-TV18 reported on October 17. No price band or final issue size has been set yet.

What the Hunger Pangs IPO is raising money for

The fresh-issue money is meant for opening new Burma Burma restaurants in India, with the rest going to general corporate purposes. The OFS part doesn’t put a rupee into the company. That cash goes to the sellers.

And the seller list is long. According to CNBC-TV18, promoters Ankit Virendra Gupta and Chirag Narendra Chhajer are offering up to 60 lakh shares each, and promoter-group entity Bbigplas Poly up to 42 lakh shares. Three angel funds, Negen Tech Opportunities Angel Fund, Venture Catalysts Angel Growth Fund and L V Angel Fund, are also selling, along with a few individual shareholders. Financial Express names Pantomath Capital Advisors as the sole book-running lead manager.

If the split between new money and exits is new to you, our explainer on fresh issue vs offer for sale covers why it matters.

The business in numbers

Burma Burma was founded in 2013 and opened its first restaurant in Mumbai in 2014. It’s an all-vegetarian, no-alcohol format built around Burmese food and tea. As of July 31, 2026, the company ran 22 restaurants across nine cities, plus one delivery kitchen and three warehouses. The average bill in FY26 was ₹2,400, per CNBC-TV18.

Revenue from operations rose 46.56% year-on-year to ₹155.50 crore in FY26, from ₹106.10 crore in FY25. Two years back, in FY24, it was ₹71.92 crore, so the top line has more than doubled in two years. Financial Express reports EBITDA rising to ₹25.68 crore in FY26 from ₹21.35 crore.

Here’s the catch. The net loss widened sharply, to ₹15.37 crore in FY26 from ₹1.53 crore in FY25, CNBC-TV18 reported. The company did post a small profit of ₹1.09 crore on revenue of ₹53.73 crore in the April-June 2026 quarter. One quarter isn’t a trend, but it’s the figure investors will look at most closely.

Risks the DRHP flags

Three stood out to us. First, it’s a one-brand company, and the prospectus itself says the vegetarian, no-alcohol format may limit how many customers it can reach. Second, rent. Every outlet is leased, and occupancy costs came to ₹35.57 crore in FY26, or 22.87% of revenue from operations. Those costs are largely fixed, so a slow month at a new outlet hurts. The DRHP says a new restaurant usually needs three to six months to reach the sales and efficiency of an established one.

Third, delivery. It made up 10.76% of FY26 revenue, which means paying commissions to food-delivery apps, and any fee hike from those platforms eats straight into margins.

What to watch next

SEBI still has to review the draft. The real test will be the price band and what valuation it implies for a chain that only just turned a quarterly profit. When the red herring prospectus comes, the restaurant-level numbers will matter more than the headline growth rate. Our guide to what a DRHP tells investors explains which sections to read first, and the IPO investing guide covers the basics.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.