GMR Group, the infrastructure major, has entered into an agreement with the international power producer InterGen NV (Intergen) to acquire Intergen's 100% ownership stake in Island Power- a Singapore based private Electric utility gas firm.

Island Power is currently developing an 800 MW combined-style power facility fired by natural gas to be located on Jurong Island, Singapore.

According to market experts, the move will enable GMR to enter the South East Asian energy market.

The project is expected to bring approximately US$1.5bn in Foreign Direct Investment into Singapore.

Shares of the company gained Rs 4.5, or 2.77%, to trade at Rs 167.20. The total volume of shares traded was 1,528,717 at the BSE (2.00 p. m., Friday).