In a bonanza to shareholders, GAIL India [Get Quote] on Thursday approved a bonus share in the ratio of one additional share for two shares held.

The shares issued will be in the ratio of 1:2 and which will double the authorised share capital to Rs 2,000 crore (Rs 20 billion), GAIL chairman and managing director U D Choubey said.

He said the company proposes to raise Pata Petrochemicals' annual capacity to 500,000 tons in the next one year from the existing 400,000 tons.

It will further raise the annual capacity to 800,000 tons in future, Choubey said. "The increased production of polymers at Pata shall further add value," he told shareholders.