Hunger Pangs Files SEBI IPO with Rs 150 Crore Fresh Issue
Hunger Pangs Limited has filed its draft red herring prospectus for an IPO comprising a Rs 150 crore fresh issue and an offer for sale of up to 2.79 crore shares. The company plans to use the proceeds to open 27 new Burma Burma restaurants by FY29.
Hunger Pangs Limited has filed its draft red herring prospectus with SEBI for an IPO to raise Rs 150 crore. The issue comprises a fresh issue of Rs 150 crore and an offer for sale of up to 2.79 crore shares by existing shareholders, with Panthomath Capital Advisors as the sole book-running lead manager.
Financial performance and market position
Operating revenue surged 46.6% year-on-year to Rs 155.5 crore in FY26. Despite this growth, the company's net loss widened significantly to Rs 15.4 crore from Rs 50.5 lakh in the previous fiscal year. Total expenses climbed 61.8% to Rs 175.8 crore.
EBITDA grew 20.2% to Rs 25.7 crore. The EBITDA margin, however, contracted to 16.5% in FY26 from 20.1% in FY25. The average bill value declined to Rs 2,400. Delivery contributed 10.76% of the FY26 operating revenue. The company's outlets operate in premium malls, high streets, and corporate parks.
Key financial metrics for FY26 are summarised below:
| Metric | FY26 | FY25 |
|---|---|---|
| Operating Revenue | ₹155.5 Cr | ₹106.1 Cr |
| EBITDA | ₹25.7 Cr | ₹21.4 Cr |
| EBITDA Margin | 16.5% | 20.1% |
| Net Loss | ₹15.4 Cr | ₹0.5 Cr |
| Average Bill Value | ₹2,400 | ₹2,560 |
Expansion plans and use of proceeds
The parent company plans to deploy Rs 117.3 crore from the fresh issue to open 27 company-owned restaurants. It will open 12 outlets in FY28 and 15 in FY29. Funds will cover civil work, kitchen equipment, and setup costs. A sum of Rs 10 crore is earmarked in FY27 for advance payments toward fit-outs, with no restaurant expected to open that year. The remaining funds, capped at 25% of gross proceeds, are for general corporate purposes.
Cofounders Ankit Gupta and Chirag Chhajer will each offload up to 60 lakh shares via the OFS. Promoter group entity Bbigplas Poly will sell up to 42 lakh shares. Other selling shareholders include Negen Tech Opportunities Angel Fund, Venture Catalysts Angel Growth Fund, an LV Angel Fund scheme, and individuals Nisarg Ajaykumar Vakharia, Shweta Sharma, and Mehul Kirit Mehta.
The company has already identified locations for five outlets in Bengaluru, Surat, Jaipur, Kolkata, and Delhi and signed letters of intent for these sites. The remaining restaurant locations are yet to be finalised.
Market context and competitive landscape
Hunger Pangs is India's largest specialty Burmese casual dining restaurant chain. As of July 31, 2026, it operated 22 restaurants, one delivery kitchen, and three warehouses across nine cities. Its network expanded from 12 to 21 outlets during FY26, with seating capacity rising to 1,991 seats.
The company operates in India's full-service dining market, valued at approximately Rs 1.52 lakh crore in FY26 and projected to reach Rs 2.18 lakh crore by FY30. This market is growing at a compound annual growth rate of around 9.4%, with casual dining restaurants accounting for over 95% of it. Burma Burma competes with chains such as Mainland China, Mamagoto, Yum Yum Cha, and Berco’s.
The company has also conceptualised a premium casual dining chain of Japanese restaurants and noodle shops, which is currently under research and development. Chirag Chhajer said, "The fresh capital will be used to open 27 new restaurants by FY29, with a focus on Tier I and Tier II cities." The company plans to open 12 new outlets in FY28 and 15 in FY29 across Tier I and II cities.
