After Adani Enterprises pulled its fully subscribed Rs 20,000 crore FPO on Wednesday, market volatility spiked even further. The withdrawal of the FPO was decided to "protect investors from potential losses," the billionaire Gautam Adani wrote in a letter to shareholders.

The bank does not have any exposure to Adani offshore firms, and its exposure to top 10 borrowers has also decreased. Lender confidence in Adani Group notwithstanding, they are willing to lend to Adani.

In response to the FPO withdrawal, Adani Group Chairman Gautam Adani reassured investors that the company's fundamentals are strong. "We will proceed with our previous dedication to rapid project completion. Our company is sound from a financial standpoint. Our assets are strong and our balance sheet is in good shape "the multibillionaire manufacturer claimed.

He continued, "we have an impeccable track record of servicing our debt obligations," referencing the company's high Ebitda levels and abundant cash flow ".

Because of the recent claims of fraud made by short seller Hindenburg Research, the wealth management division of Citigroup Inc. has stopped accepting shares of the Gautam Adani group of enterprises as collateral for margin loans.
As Adani's already struggling enterprise sinks deeper into disaster, the US lender has joined Credit Suisse Group AG in limiting new loans to the company.

The value of Adani-issued securities has dropped significantly in recent days "According to a document from Citigroup seen by Bloomberg News. After hearing the bad news about the group's financial state, investors dumped stocks and bonds."

In a document, the bank announced its decision to stop providing financing for "all Adani issued securities with immediate effect." According to its projections, this decision will have minimal effect on its margin lending portfolio.