New Delhi, Sep 17 (TIWN) Vodafone Idea would opt for the equity conversion for interest payout during moratorium period, resulting in sizable dilution and might restrict potential equity infusion from any financial/strategic investor, analysts said.

Emkay Global Financial Services said in a note that the package, which is focused on annual cash outflow deferral for telcos, provides much-needed relief to VIL. 

As per reports, the government could hold anything between 30-70 per cent in Vodafone Idea with an equity option offered by the government for converting the company's dues after a four year moratorium. 

Operators have been given the option to convert their interest dues on spectrum and AGR payments, after a four year moratorium, into equity to the government.