Press Release
VIS Assigns Initial Entity Ratings to LSE Ventures Limited
Karachi, May 14, 2025: VIS Credit Rating Company Limited (‘VIS’) assigns initial entity ratings of ‘A+/A1’ (Single A Plus/A One) to LSE Ventures Limited (‘LSEVL’ or the ‘Company’). Medium to long term rating of ‘A+’ indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’.
LSE Ventures Limited was registered on July 18, 2022 under the Companies Act, 2017 as a public unlisted company limited by shares. In June 2023, the Company obtained the listing status under the symbol "LSEVL" at Pakistan Stock Exchange (PSX) as a result of demerger scheme approved on April 26, 2023 by the Honorable Lahore High Court (LHC), accomplished through a reverse merger with Data Textiles Limited.
The Company’s principal line of business is to invest in shares, bonds, stocks, units of mutual funds or any other securities or its related instruments or otherwise in all types of real assets and in such manner as may from time to time be determined by the Company and to hold, or sale such real assets, shares, bonds, stocks, units of mutual funds or any other securities or its related instruments, subject to the compliance with applicable laws.
LSEVL primarily manages the legacy equity investments made by the former Lahore Stock Exchange (LSE) during its operation as a stock exchange. These investments position LSEVL as a significant stakeholder in the domestic capital market, with major shareholdings in key capital market infrastructure entities, including the Pakistan Credit Rating Agency (PACRA), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company of Pakistan (CDC), and Pakistan Mercantile Exchange Limited (PMEX).
LSE Ventures Limited financial profile is underpinned by its equity-dominated capital structure, sound governance practices, and significant holdings in key capital market infrastructure entities. Its reliance on dividend income, particularly from CDC and NCCPL contributes to a stable revenue base. The Company’s conservative approach to financial risk, marked by zero debt, ensures resilience against market volatility. However, however assigned ratings are underpinned to the leverage and elevation of market risk inherent in the operations.
The Company’s strategic investment policy, emphasizing growth-stage entities with strong cash flows, alongside its rigorous governance framework, enhances its investment decision-making. While profitability remains constrained by elevated taxation, the upward trajectory in dividend income and anticipated growth in FY25 provides support.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf