Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant, which is proposing to make a public offer of equity shares, filed a draft red herring prospectus with the Securities and Exchange Board of India on Friday in Mumbai, according to sources.

The RINL was converted into a public limited company after a resolution was passed by the shareholders at the extraordinary general meeting on April 21. A decision was taken to offload 10 per cent of the stake.

The board has also approved reservation of 10 per cent of equity shares accounting for 48,898,462 shares for subscription by eligible employees of RINL with a discount of 5 per cent on the offer price.

The decision was taken for greater participation and involvement of its employees who are known for their efficiency and commitment, the sources said.

The public offer comprises a net offer to public of 440,086,158 equity shares and a reservation of 48,898,462 equity shares for subscription by eligible employees, amounting in all to 488,984,620 equity shares of face value of Rs.10 each.