An attempt by the management of the Rashtriya Ispat Nigam Limited to lure the employees by offering 10 per cent share in the IPO backfired on Saturday with all the employees’ unions burning the copies of circular and staging a dharna against disinvestment.

The controversial circular issued earlier in the day by the Finance & Accounts Department of the RINL, the corporate entity of the Visakhapatnam Steel Plant, advised the employees to open dematerialised (demat) accounts to buy shares.

The circular stated that the management, after submitting red herring prospectus to the market regulator SEBI, would go for public issue on October 15. The issue would be open for subscription till October 18. It said the employees would be given 10 per cent share for which a demat account was compulsory.

The Government of India is offloading 10 per cent of its equity in the profit-making company, which the unions, cutting across their affiliation, termed an attempt to hand over VSP to private hands.