Kesoram has issued a clarification saying oh no, we are not stiffing shareholders. bseindia.com/xml-data/corpf…
But one transaction stinks. They sold a division (HHC and Spun pipes) to Camden industries for 400 cr.. This seems to be a party connected to Kesoram promoters. And then, Camden couldn't run it. So Kesoram bought it back at a 22 cr. premium! 
The rest of their explanation is basically this: We did this, it's legal. We bought Century Textiles shares in the market, and then sold to a promoter connected entity at a loss. We are allowed to do this, so we did it.
This is shoddy corporate governance. Yes, it's legal. But this is the kind of stuff that's horrible for shareholders. Why would you buy from the market, sell to promoter entities at a loss, and then buy back a lousy business at a premium?
This is a brilliant lesson in understanding that all shareholders are equal, but promoters are more equal.
