LSE Group started off as a guarantee limited company licensed as a stock exchange. The idea for the establishment of a separate stock exchange for the central and northern regions of Pakistan was conceived by a group of leading businessmen and industrialists, who managed to obtain the license to operating a stock exchange under the name of Lahore Stock Exchange (LSE), the third stock exchange of Pakistan to be licensed after the licensing of Karachi Stock Exchange during 1947 and Dacca Stock Exchange in 1956.

LSE continued to function as a mutualized exchange until 2012, whereafter it was converted into a joint stock company under the Demutualization Act of the country. Upon demutualization, all assets of LSE, including its property, investments and other liquid assets were revalued for the purposes of the determination of the share capital of the company, which was then used for the pro-rata distribution of shares to all of the then 152 existing members of LSE. Thereafter, the company was renamed as Lahore Stock Exchange Limited (LSEL). Besides this, the members of the Exchange were also given individual Trading Right Entitlement Certificates (TRECs), thereby separating their ownership interests from their brokerage rights.

The conversion from a mutualized entity to a joint stock company hastened the subsequent merger of the exchange operations of LSEL with the other two stock exchanges of the country, which happened during Jan 2016, when Pakistan Stock Exchange (PSX) was created. Under the merger, all TREC holders belonging to Lahore and Islamabad Stock exchanges were granted the TRECs of Karachi Stock Exchange, leading to the emergence of a unified stock exchange in the country, and all listed companies were brought to list only on PSX.

From 2016 onwards, LSE started operating as a Non-Banking Finance Company (NBFC) under the name of LSE Financial Services Limited (LSE FSL). As an investment finance services company, LSE FSL mainly focused on providing margin financing product for the stock market participants. During 2022, the majority shares of LSE FSL were acquired by a group of new investors who initiated the process of demerger of LSE FSL into three companies.

In 2023, the demerger and reverse merger scheme of LSE FSL was approved by the honorable Lahore High Court. As a result, LSE Ventures Limited became the new parent company of LSE holding all investments and assets, whereas the real estate assets of the company were placed into another company named LSE PropTech Limited. LSE FSL continued its existence, but it became the wholly owned subsidiary of LSE Ventures Limited. This scheme of reverse merger of the LSE companies was unique from many aspects. Under a single scheme, not only a court ordered wounded-up company (Data Textiles) was revived, but also converted into a shell listed company, but also another company (LSE FSL) was demerged into three companies. In yet another unique feature, two demerged companies were reverse listed on Pakistan Stock Exchange (PSX) against one shell company. The shares of LSE PropTech Limited (PSX symbol: LSEPL) started trading on June 12th, 2023, while the shares of LSE Ventures Limited (PSX Symbol: LSEVL) made their PSX debut on June 27th, 2023. The listing of LSEVL on PSX was unique from two noteworthy perspectives. Firstly, LSEVL became the first-ever company whose Gong Ceremony for the start of trading was held in PSX’s Lahore regional office. Secondly, it marked the first ever occasion in Pakistan when the Chairman of the Securities and Exchange Commission of Pakistan (Mr. Akif Saeed) himself inaugurated the listing of any company in Pakistan.

During 2024, the new investors completed another round of mergers, whereby LSE PropTech and Modaraba Al-Mali (which had held the majority equity position in LSE Ventures) were merged with LSE Capital Limited, the management company of Modaraba Al-Mali. Under the same merger Scheme, LSE Financial Services was also made to become a PSX Listed Company.

The 2024 merger of LSE companies led to the informal formation of LSE Group, with LSE Capital Limited, becoming the new parent/holding company of the other group companies. Besides, LSE Capital (PSX Ticker: LSECL), the group comprises of two more listed companies, LSE Ventures (PSX Ticker: LSEVL) and LSE Financial Services (PSX Ticker: LSEFSL), which all became the PSX listed companies through the unconventional route of reverse mergers without raising any capital from the market.