Piramal Enterprises sold its entire 8.34% stake in Shriram Finance via a block deal on Wednesday, June 21. Stocks of both companies surged in the early trading hours.

Around 3.2 crore equity shares amounting to an 8.34% stake in Shriram Finance changed hands at an average price of Rs 1,545 per share. The total deal value stood at Rs 4,944 crore. Morgan Stanley was the sole broker for the deal.

Piramal’s exit comes after private equity major TPG India Investments sold its entire 2.65% stake in Shriram Finance via block deals on Monday. Nearly 1 crore shares were sold at an average price of Rs 1,401 apiece, aggregating to almost ₹1,390 crore. The seller group included a clutch of mutual funds and other institutional investors.

Shares of Shriram Finance were trading at Rs 1,714.85 at noon, jumping 9.95% from the previous close. The stock hit a fresh 52-week high of Rs 1,793.55 during the trading session. At the same time, Piramal Enterprises saw its shares rise 12.39% to reach Rs 942.35.

Due to the group’s restructuring, Piramal Enterprises owns stakes in multiple Shriram Group companies. Piramal owns a 20% stake in each of Shriram Gi Holdings, Shriram Li Holdings, Shriram Capital and Shriram Investment Holdings, a 13.33% stake in Shriram General Insurance Company, a 14.91% in Shriram Life Insurance Company, and a 10% stake in Shriram Transport Finance and Shriram City Union Finance.