Shares of United Spirits Ltd jumped more than 4 per cent in early morning trade on Monday, after liquor giant Diageo increased its stake in the Vijay Mallya-led company.

The UK-based world's biggest spirits maker increased its stake in the Indian company through its Dutch arm Relay BV.

Relay BV purchased nearly 35 lakh shares in United Spirits through a bulk deal at an average price of Rs 2,474.45 apiece. Following the transaction, valued at Rs 866 crore, Relay's stake in United Spirits jumped from 26.37 per cent to 28.8 per cent.

On the other hand, existing shareholder foreign fund house Oppenheimer Funds offloaded 36.42 lakh shares of United Spirits in the open market through bulk deals for Rs 901.13 crore.

In 2012, the British firm had announced its intention to acquire up to 53.4 per cent stake in United Spirits in a multi-structured deal for more than Rs11,000 crore. However, it could acquire only 25.02 per cent stake due to halfhearted response to its open offer.

At 09:20 a. m., shares of United Spirits were trading 2.5 per cent higher at Rs 2539 apiece, after hitting a high of Rs 2580 apiece.