Shares of cement-maker Dalmia Bharat Ltd jump as much as 3.1 pct to a record high of 3,159 rupees.
Stock posts biggest intraday pct gain since Nov 17.
Co submits a binding offer to buy Nagpur-based Murli Industries Ltd, the Mint reports.
Reuters could not immediately reach companies for comment.
Murli Industries owes about 18 bln rupees to a group of lenders and Dalmia has sought total haircut of about 80 pct of Murli's outstanding loans, the Mint reports.
"If sound bites is anything to go by, the binding bid looks fine," says Rohit Natarajan from IDBI Capital, adding it all boils down to how much cost per tonne Dalmia eventually would pay.
Dalmiya stock has risen about 127 pct this year up to Friday.
