I think they sold to meet the 75% regulation.
RHI should hold less than 75% of the merged company as per SEBI rules. Since the remaining two companies which are being merged are almost fully owned by the parent company, they’ll have to dilute some stake in this before merging.
Also, what does the community think about the current valuations (~220)?
I think it is still undervalued even after the surge after Q1 results given that it is merging to become a bigger entity with 100% increase in revenues and 60% increase in PAT.
I believe their margins will improve further after the merger.
Disclosure: Entered at ~170