Reliance Industries, the country's most valuable company, has launched an employee stock option scheme to reward nearly half of its workforce.

The scheme, one of the largest in the manufacturing industry, will offer 28.7 million shares to 18,000 employees, depending on their experience and tenure. At the ruling market price of Rs 1,400 a share, the scheme's notional value is estimated at Rs 4,000 crore (Rs 40 billion). Reliance has a workforce of nearly 35,000.

Sources close to the development said the company had informed the stock exchanges about the details of the scheme on Saturday evening.

According to the scheme provisions, eligible employees will be able to exercise their options within five years. The maximum vesting period would be seven years from the date of grant of options. The vesting might happen in one or more tranches.

The exercise price for the options would be in line with the Sebi formula for the purpose. Sources said the price would be in the range of Rs 1300-1400 a share.