Off late it has been exploring several strategic options which included listing its airport vertical or sell a minority 49% at its airport holding company to investors or even an outright sale of its economic interests in the Bangalore airport for months. Last year it even mandated investment banks Bank of America Merrill Lynch and Goldman Sachs for the exercise that would have helped retire Rs.3500 crore debt in the vertical and prune group operations. Besides, it is already hobbled with coal-mine acquisition debt and low profitability of its power plants.
Meanwhile though the Union Budget tried to give some boosting to the power companies/sector, but I feel it is too less and too late for the companies like GVK Power, who are saddled with mammoth debt traps.
In such circumstances, I would suggest you to exit the scrip, at the resistance zone of Rs.7-7.30, on some positive news. On the long term if you want to bet in the power sector, albeit with a little risk then Reliance Power LLtd (Promoters' holding slightly increasing in tbe December quarter) at Rs.46.45, is a better alternative.