SGB redemption today: Investors to get 333% return for this Sovereign Gold Bond series

The Reserve Bank of India (RBI) on Wednesday announced a redemption price of Rs 12,801 per unit for the sovereign gold bond 2017-18 Series-XI

Unit holders of SGB 2017-18 Series-XI issued on December 11, 2017, will get Rs 12,801 per unit as final redemption price.

How much profit will investors get?

The RBI has set the price for final redemption of SGB 2017-18 Series-XI at ₹12,801 per unit.

"Accordingly, the redemption price for final redemption due on December 11, 2025, shall be ₹12,801/- (Rupees Twelve Thousand Eight Hundred and One only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., December 08, 2025, December 09, 2025, and December 10, 2025," the central bank said.

The absolute return is ₹12,801 minus ₹2,954, equaling ₹9,847 (excluding interest). This represents a return of 333%, calculated as (9,847 ÷ 2,954) × 100.

The absolute return for those who bought this SGB series online in 2017 amounts to ₹12,801 minus ₹2,904, which equals ₹9,897 (excluding interest). This represents a return of 340%, calculated as (9,897 ÷ 2,904) × 100.

The calculation shows that investors who purchased the SGB 2017-18 Series 11 online in 2017 will book a 340% profit on redemption, while offline investors will book a 333% profit on final redemption.

The unit holders had invested at Rs 2,954 per unit of the SGB at that time, and have also earned an interest of 2.5 per cent per annum on the sum invested.

The rally in gold prices over the past few months led to reports of the impressive gains that investors stand to make.

The RBI also announced the same price per unit of Rs 12,801 for the premature redemption of the 2019-20 Series I, due on December 11, 2025.

The prices are based on a simple average of the closing gold prices of 999 purity for the previous three working days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA), the RBI said.