SGB redemption today: 2017-18 Series XII turns ₹2,840 into over 4x returns; check details

The Sovereign Gold Bond (SGB) 2017-18 Series XII is due to mature today, December 18, 2025. The redemption price for this SGB series has been fixed at ₹13,245.

"In terms of GOI notification F.No.4(25)-(W&M)/2017 dated October 06, 2017 (SGB 2017-18 Series-XII-Issue date December 18, 2017) on Sovereign Gold Bond Scheme, the Gold Bond shall be repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be December 18, 2025," the Reserve Bank of India (RBI) said in a press release.

How redemption price for SGB 2017-18 Series XII is calculated

The redemption price of SGB shall be based on the simple average of the closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). "Accordingly, the redemption price for final redemption due on December 18, 2025, shall be ₹13,245/- (Rupees Thirteen Thousand Two Hundred and Forty-Five only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., December 15, 2025, December 16, 2025, and December 17, 2025," RBI said.

Issue price: ₹2,890 per gram

₹2,890 per gram figure is the officially notified issue price for Series XII of the 2017-18 Sovereign Gold Bond scheme when it was issued in December 2017, with a ₹50 discount for investors applying online and paying digitally

• Issue price: ₹2,890 per gram

• Discount for online/digital applications: ₹50 per gram less, i.e., ₹2,840 per gram

How much profit will investors book?

The absolute return is ₹13,245 minus ₹2,890, equaling ₹10,355 (excluding interest). This represents a return of 358%, calculated as (₹10,355 ÷ ₹2,890) × 100.

The absolute return for those who bought this SGB series online in 2017 amounts to ₹13,245 minus ₹2,840, which equals ₹10,405 (excluding interest). This represents a return of 366%, calculated as (₹10,405 ÷ ₹2,840) × 100.

The calculation shows that investors who purchased the SGB 2017-18 Series 12 online in 2017 will book a 366% profit on redemption, while offline investors will book a 358% profit on final redemption.

The unit holders have also earned an interest of 2.5 per cent per annum on the sum invested.

Responding to an unstarred question by TMC MP Saket Gokhale, Minister of State for Finance Pankaj Chaudhary said these figures relate to SGBs issued between 2015 and 2024–25 (provisional). To manage redemptions amid high gold prices, the government has set up a Gold Reserve Fund and transferred ₹28,000 crore to it in FY 2024–25.