Adani Enterprises Ltd (AEL) has reportedly dropped a plan to raise Rs 1,000 crore ($121.65 million) through bonds, after a sell-off in its shares forced the flagship to pull the plug on a Rs 20,000- crore follow-on public offering (FPO).

The latest decision by AEL should not come as a surprise as the current market mayhem in the backdrop of the allegations made by Hindenburg Research is impeding its ability to raise capital from the markets.

In a video address recently, Gautam Adani had hinted that the company could renew its plan to raise money from the markets once stability returns.

Adani, who was once the third richest individual in the world, has lost billions of his wealth due to the market turmoil and is now placed 21st in the Bloomberg Billionaires Index. He had said in the video that AEL will continue to focus on long-term value creation and growth will be managed by internal accruals.

A Bloomberg report on Saturday said that AEL had planned an issuance of the public bond for January and it had appointed Edelweiss Financial Services, AK Capital, JM Financial, and Trust Capital, to manage the issue.

The group flagship has now reportedly stopped the activity. Observers said the group is now likely to focus on building confidence among lenders, even as they do not rule out the possibility of some slowdown in its expansion plans.

There are reports that it may choose to prepay some debt to banks. On Thursday, SBI chairman Dinesh Khara had indicated that the lender has not shut its doors on any fresh funding proposals from the conglomerate. He, however, added that it will continue with its practice of insisting that promoters also bring in equity before committing any fresh funds.

However, rating agency Moody’s warned that the sharp fall in its share prices since last Wednesday could affect the Adani group’s ability to raise capital.

“These adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable,” the ratings agency said.

Standard & Poor’s, which had cut its outlook on Adani Ports & Special Economic Zone and group arm Adani Electricity to negative from stable, had said that there is a risk that investor concerns about the group’s governance and disclosures are larger than it has factored into the ratings.