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’s acquisition of a significant stake in Orient Cement is a strategic bet on India’s growth story, but with earnings under pressure, the challenge now lies in making the premium payout deliver returns.

Ambuja Cements, part of Adani Group, is set to acquire a 46.8% stake in Orient Cement Ltd for Rs 8,100 crore. The acquisition boosts Ambuja's goal of 140 MTPA capacity by 2028, enhancing Adani Cement's market share and strengthening its portfolio with OCL's assets and strategic locations.