Bhushan Steel surged to a 20-month high on debt restructuring proposal.
Bhushan Steel stock rose as much as 8.3 per cent to its highest since August 10, 2015.
The company had last month submitted a final proposal for debt restructuring under the central bank's S4A scheme, a media report said, citing unnamed people close to the developments.
S4A, or Scheme for Sustainable Structuring of Stressed Assets, was unveiled by RBI last year to make debt recast easier.
State Bank of India and Punjab National Bank are lead two groups of creditor banks to Bhushan Steel.
Bhushan Steel had a debt of Rs 46,062 crore ($7.15 billion) as of last financial year to March 2016.
Bhushan Steel was not immediately available for comments.