Burma Burma parent Hunger Pangs files DRHP for IPO

Hunger Pangs, the parent of restaurant chain Burma Burma, has filed its draft red herring prospectus (DRHP) for an IPO. The offer comprises a fresh issue of up to ₹150 Cr and an offer for sale (OFS) of up to 2.8 Cr shares.

Of the fresh issue, ₹117.29 Cr is earmarked to open 27 company-owned restaurants over FY28 and FY29, in existing markets and in new Tier I and Tier II cities. The company expects 12 openings in FY28 and 15 in FY29.

No IPO-funded restaurant is expected to start operations in FY27, though ₹10 Cr is set aside that year for advance payments on fit-outs and preparatory costs. Sites for five outlets, in Bengaluru, Surat, Jaipur, Kolkata and Delhi, have letters of intent signed, and the remaining locations are not yet finalised.

Cofounders Ankit Gupta and Chirag Chhajer will each sell up to 60 Lakh shares in the OFS, alongside other selling shareholders including Bbigplas Poly, Negen Tech Opportunities Angel Fund, Venture Catalysts Angel Growth Fund and an LV Angel Fund scheme.

Hunger Pangs, founded in 2013, opened its first Burma Burma restaurant in Mumbai in 2014. The chain serves vegetarian Burmese food in the premium casual dining segment.

As of July 31, it ran 22 restaurants across nine cities, including Mumbai, Bengaluru, Hyderabad, Kolkata and Delhi NCR, plus a delivery kitchen in Mumbai. The company has also conceptualised a premium casual chain of Japanese restaurants and noodle shops, which remains in research and development.

Operating revenue rose 46.6% to ₹155.5 Cr in FY26, while net loss widened to ₹15.4 Cr from ₹50.5 Lakh as total expenses grew 61.8%.

EBITDA margin fell to 16.5% from 20.1% in FY26, and average bill value declined to ₹2,400 from ₹2,560 as the network grew from 12 to 21 outlets. In Q1 FY27, EBITDA margin was 21.3%, though the quarterly net profit of ₹1.1 Cr included a ₹2 Cr deferred tax credit, with a pre-tax loss of ₹89 Lakh.