The continuing US government shutdown is starting to impact Indian companies engaged in cross-border transactions, as limited staffing at key US agencies is delaying clearances and filings.
Companies such as Infosys and Hindalco are experiencing procedural hold-ups as the Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS) operate at reduced capacity.
Infosys’ Rs 18,000-Crore Buyback Faces Timing Delays
Infosys, which had announced a Rs 18,000-crore share buyback in early September, has yet to declare the record date for the tender offer. While shareholder approval and the SEC’s exemptive relief were obtained by mid-September, the ongoing shutdown could stretch timelines for procedural filings.
Phil Fersht, CEO of global tech advisory HFS Research, said, “The US government shutdown will not derail Infosys’ buyback, but it may slow the process. These filings are procedural, not approval-based. The real governance remains under SEBI, which continues unaffected.”
Infosys’ buyback is its largest in three years, aiming to repurchase 100 million shares (2.41% of paid-up capital) at Rs 1,800 per share via the tender offer route. Promoters and promoter groups, holding 13.05%, are not participating, while ADR holders can convert receipts into equity shares before the record date.
Hindalco’s AluChem Acquisition Delayed
Similarly, Hindalco Industries is facing delays in completing its $125-million acquisition of US-based AluChem Companies due to the suspension of CFIUS review timelines.
Although Hindalco filed a short-form declaration with CFIUS on August 12 and submitted a long-form declaration on September 30, the federal shutdown paused statutory deadlines under the review framework. The acquisition, announced in June, is part of Hindalco’s strategy to expand its high-value, technology-led materials business and strengthen its specialty alumina portfolio through its US subsidiary. Completion now depends on the resumption of regular CFIUS operations.
