Adani Group to cut capital spending plans after halting $2.5 billion FPO: Report

Banking sources said that domestic lenders do not plan to interfere if Adani uses sanctioned, but yet unused credit lines as they would prefer avoiding defaults. (File Image)

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Adani Group is considering cutting down its capital spending plans after it said it has called off the $2.5 billion Adani Enterprises FPO in light of the Hindenburg report, sources told Mint.

As per the sources, the group may put up increased collateral to lenders in form of stock pledges and trim its capex plans for some businesses. Particularly in certain businesses, it may consider a 16-18 months growth timeline, instead of the usual 12-month target. The reports added that “usual pace of growth would return once normalcy returns”.

Also Read I Uday Kotak on Adani-Hindenburg fiasco: 'Don't see systemic risk to Indian financial system'

The sources further said that funding alternatives via internal accruals, private placement and promoter equity may also be considered. Banking sources also told the paper in a separate report that domestic lenders do not plan to interfere if Adani uses sanctioned, but yet unused credit lines as they would prefer avoiding defaults.

Also Read I Adverse developments likely to reduce Adani Group’s ability to raise capital: Moody's on Hindenburg report

Adani did not immediately respond to Mint or Reuters. Moneycontrol could not independently verify the reports.

Since the Hindenburg Report in January alleged stock manipulation and raised questions over the running of Adani Group companies, the various arms have lost billions of dollars in stock value. Founder Gautam Adani has also slipped on the Forbes rich list as his value plummeted.

Also Read I SEBI examining Adani Group shares rout: Report

Adani Enterprises chairman Gautam Adani addressed investors on February 2 and spoke about the cancellation of the company's follow-on public offering (FPO). He stated that considering volatility of the market seen on February 1, the Board "strongly felt that it would not have been morally correct to proceed with the FPO".

"For me, the interest of my investors is paramount and everything is secondary. Hence to insulate the investors from potential losses we have withdrawn the FPO. The fundamentals of our company are strong. Our balance sheet is healthy and assets, robust," Adani said. "Once the market stabilizes, we will review our capital market strategy."

Also Read I Hindenburg impact: Icra says monitoring Adani group companies