Jan 4 (Reuters) - Dignity Plc said on Wednesday it is in advanced talks with a consortium comprising of investment firms SPWOne V Ltd and Castelnau Group Ltd, after it received unsolicited buyout proposals from the consortium in October and November last year.

The London-listed company's shares were up 26% as of 1700 GMT.

Dignity said it has agreed to provide the consortium, whose latest proposal on Nov. 13 valued the group at about 262.7 million pounds ($316.71 million), with access to limited confirmatory due diligence after having rejected the previous proposals.

The consortium's proposal, which values Dignity at a price of 525 pence per share, is at a 23.4% premium to the group's closing price of 425.5 pence per share on Jan 3.

The proposal includes the option for Dignity shareholders to stay invested in the company through an unlisted share alternative in Valderrama, a joint venture between SPWOne V and Castelnau, or a listed share alternative in Castelnau.

SPWone is owned by veteran entrepreneur Peter Wood, who has also founded seven companies across UK, Europe and U.S, including the London-listed insurance firm Direct Line .

The consortium confirmed its buyout proposal in a separate statement. ($1 = 0.8295 pounds) (Reporting by Muhammed Husain in Bengaluru; Editing by Shailesh Kuber)