Shares of Cipla Ltd. gained as much as 6 percent on Friday to hit an all-time high of Rs 1,238. The stock snapped a two-day losing streak but has risen 20 percent over the last month.

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Last week, CNBC TV18 reported that Cipla’s promoters were in talks with private equity (PE) firms to sell a part of their total holding in the company.

The promoters currently own 33.47 percent stake in Cipla. PE firms like Blackstone, Baring Asia, among others, are in talks to explore a deal for a part of this stake. An investment bank has also been reportedly hired to advise on the transaction. The move comes as a step towards succession planning for the company, the sources indicated.

The sources also suggested that the PE firms are trying to stitch together a consortium of investors to fund a large deal for a bigger chunk of the stake on offer.

In response to CNBC-TV18’s report, Cipla had mentioned that the company was not aware of any event that required disclosures, and that it would make appropriate disclosures as and when the requirement arose.

The stock began its uptrend after reporting its June quarter results last week, where its net profit grew by 45 percent from last year, while revenue and operating profit grew by 17.7 percent and 30.7 percent respectively compared to the same period last year.

Shares of Cipla are trading 4.2 percent higher at Rs 1,214.85. Out of the 41 analysts that track the stock, 30 of them have a buy recommendation, eight say hold, while three have a sell rating.