Mumbai: The board of Tata Steel has recommended an issue of bonus shares in the ratio of 1:2 This is subject to the approval of the shareholders at the annual general meeting of the company on July 22.

Tata Steel had last offered bonus shares in 1987-1988 in the ratio of 2:5. According to a senior company official, steel industry had faced tough times in the recent past. But in the last two years, the industry as well as Tata Steel had benefited from the upturn in steel prices. Improved profitability resulting in better cash flows prompted the company to offer a bonus share issue.