Future Retail Ltd's shares surged 17% after the deal, which was announced on Saturday. Future Enterprises Ltd jumped 5% and hit an upper price limit.

Future Lifestyle Fashions rose 5%, while Future Consumer Ltd was up 4.8%. Future Supply Chain Solutions jumped 5%.

Shares in oil-to-telecoms conglomerate Reliance, India's most valuable company, were up 1.1% after the deal.

Reliance's grocery and fashion retail businesses will benefit from Future's "strong" brands, analysts at Anique Stock Broking Ltd in Mumbai said in a client note.

Shares in several Indian banks, which reportedly have exposure to the indebted Future Group, also rose on Monday.

Lenders led by Axis Bank Ltd have a total exposure of 160 billion rupees ($2.2 billion) to Future Group, the Mint daily reported.

A consortium led by Bank of India has an exposure of 57.50 billion rupees, while Axis Bank and Bank of Baroda Ltd have exposures of 12.5 billion rupees and 7.5 billion rupees, respectively, the newspaper reported, citing data from ICICI Securities.

Shares in state-run Bank of India were up 7.2% in early trading. Axis Bank was up 1.8%, while Bank of Baroda gained 1.3%. The Nifty banking index was up 1.3% amid an upbeat broader market.

($1 = 73.1400 Indian rupees)

(Reporting by Sachin Ravikumar; Editing by Amy Caren Daniel)