Ambuja Cements, India's No.2 cement maker, said on Tuesday it would buy a nearly 47% stake in rival Orient Cement for 37.91 billion rupees ($451 million), but analysts raised doubts about the deal winning regulatory approval.

Ambuja Cements will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.

Cement industry consolidation continues with Ambuja Cements acquiring Orient Cement stake at a premium, despite sector challenges.