Fashion retail group Lindex AB saw its shares climb six per cent on Monday after asset management group Amaranth Capital bought a 10.4 per cent stake from Norwegian firm Orkla.

Amaranth said it had been keeping a close eye for the chain for several months and believed it is undervalued in relation to its potential.

In June, Lindex posted a sharp rise in third quarter profit to $9.6 million from $7.1m in the year-ago period on the back of higher sales.